FX.co ★ German Construction PMI Shows Modest Recovery in November

The HCOB Germany Construction PMI increased to 45.2 in November 2025, bouncing back from a seven-month low of 42.8 in October. This indicates a modest recovery, although overall activity remains in contraction. The rebound was mainly fueled by civil engineering, which saw expansion for the fourth time in six months, countering the persistent weakness in both housing and commercial construction sectors, with residential construction being particularly weak. New orders continued to decline, reflecting sluggish demand. However, employment saw a rise for the first time in more than three and a half years, halting a long series of job cuts that began in April 2022. Purchasing activity continued its downward trend, and supplier delivery times extended for the second consecutive month. Input price inflation eased a bit, and subcontractor charges increased at a slower rate than the previous month, although they remained at a two-year peak. Despite this partial recovery, German constructors stay cautious about the coming year, given the soft demand, high costs, and elevated long-term interest rates.