The S&P Global Germany Construction PMI slipped to 42.1 in July 2026 from 44.8 in June, indicating a sharper contraction in construction activity and marking the weakest reading in three months. The index stayed below the neutral 50 threshold for the seventh straight month, underlining the sector’s prolonged downturn.
Housing remained the worst-performing category, with activity declining at the fastest rate in three months. Commercial construction also registered a quicker decline. In contrast, civil engineering activity returned to growth for the first time in three months.
New orders continued to fall, as elevated prices and customers’ delayed decision-making dampened demand. Employment decreased for the sixth consecutive month, and purchasing activity also weakened.
On the cost side, input price inflation eased to a five-month low, while supplier delivery delays moderated for the second month in a row. Business confidence remained in negative territory and deteriorated further.
