FX.co ★ Germany Construction PMI Slips in August

In August 2025, the HCOB Germany Construction PMI slightly declined to 46.0 from July's 29-month peak of 46.3, indicating a renewed sector contraction. Commercial activity suffered its most significant drop since March, while housing experienced a lessened, albeit still ongoing, decline over the last two and a half years. Infrastructure projects, however, expanded robustly for the second time in three months, offering a rare positive note. Despite this, new orders continued to diminish, pressured by sluggish economic conditions and high costs. On the employment front, job cuts have slowed for the third consecutive month, resulting in a minimal decrease in employment—the smallest dip since staffing reductions began in April 2022. While input price inflation decreased, subcontractor fees increased at their fastest rate in over a year. In addition, business sentiment sank to a four-month low.