FX.co ★ German Construction Slump Eases in June

The S&P Global Germany Construction PMI rose to 44.8 in June 2026 from 42.4 in May, indicating the slowest contraction in construction activity in three months. The sector remained in decline across all key segments, with housing continuing to perform the worst, though the downturn in both commercial and civil engineering activity softened. New orders also fell further but at the slowest rate so far this year, as elevated prices and subdued demand continued to restrain client spending. Employment decreased for the fifth consecutive month, yet the pace of job cuts, as well as the reduction in purchasing activity, slowed to a three-month low. Supply conditions stayed difficult, with persistently high input cost inflation and longer delivery times associated with the Middle East conflict and product shortages. Nonetheless, reports of delays fell to their lowest level in three months. Business confidence strengthened for the second month in a row but remained in negative territory, as firms continued to point to high costs, constrained customer budgets, and weak market sentiment.