FX.co ★ German Construction PMI Back in Expansion Territory

In December 2025, the HCOB Germany Construction PMI climbed to 50.3, up from 45.2 in November, indicating the first growth the sector has experienced since March 2022. This advance was primarily fueled by a significant increase in civil engineering activities, which expanded at their most rapid rate since 2011. Meanwhile, the downturn in housing projects has considerably softened, with a reduction in residential work occurring at its slowest pace since March 2022. On the contrary, commercial construction continues to be the weakest area, witnessing another steep decline, mirroring the trends observed over the past three months. On the pricing front, input cost inflation has accelerated to reach a three-month peak, and output prices are rising at the fastest pace seen in over two years. Despite these developments, construction firms maintain a pessimistic outlook for the upcoming twelve months due to apprehensions about slow economic growth and a persistent lack of new orders.