FX.co ★ German Construction Downturn Eases in June

In June 2025, the HCOB Germany Construction PMI recorded a slight uptick, reaching 44.8 from May's 44.4, indicating a marginally slower contraction in the sector. This subtle recovery was primarily attributed to the resurgence of civil engineering activity, marking its first growth phase since August 2023. Moreover, commercial construction saw its slowest decline in over two years. Nevertheless, the housing sector remained under significant pressure, experiencing a marked contraction at the steepest rate observed in three months. Despite new orders continuing to fall, the pace of this contraction was slightly less severe than in the previous month. In terms of costs, input price inflation surged to its most elevated point in 28 months, with output prices also rising, even amidst a notable improvement in the availability of materials. Optimism that had emerged in May dissipated by June, giving way to fresh pessimism, largely influenced by the deepening slump within the housing market.