Germany's construction sector experienced a marked contraction in November, according to data released by S&P Global's purchasing managers' survey on Thursday.
The HCOB Construction Purchasing Managers' Index dropped to 38.0 in November from 40.2 in October. A score below 50.0 signals a contraction in the industry.
Breaking it down by categories, housing activity emerged as the least performing sector. Commercial projects contracted at their fastest rate since January, while civil engineering activities declined at a slightly reduced pace.
New orders took the steepest plunge in six months, reflecting weak demand conditions. Employment levels decreased notably, and companies made significant reductions in their purchasing activities.
Regarding prices, the costs of building materials and products saw a slight increase, bringing to an end a seven-month trend of decline.
Expectations for future output deteriorated significantly, with confidence levels dropping to a 14-month low. Firms expressed concerns that ongoing political uncertainty and economic weakness would continue to suppress demand.
