Germany’s construction sector eased slightly in January, headline PMI fell slipped to a 5-month low. Markit Germany headline Purchasing Managers’ Index fell to 52.0, the lowest since last August, down from December’s nine-month high of 54.9.
Nevertheless, optimism about the coming year hit record high. German constructors reported the brightest outlook since the series began in 1999. Despite the overall slowdown, activity growth remained broad-based by category.
New orders, employment and purchasing activity all increased, albeit more slowly than in December. Purchasing costs in Germany’s construction sector continued to rise sharply. The rate of hiring slowed from December’s four-month high, but remained solid overall.
"While the slowdown is disappointing given the sector’s buoyant performance in December, it is little cause for concern. Both employment and purchasing activity increased for the nineteenth straight month, suggesting that constructors anticipate further growth at least in the near-term." said Philip Leake, Economist at IHS Markit.
The single currency was changed little against its major rivals after German construction PMI data. The euro was trading at 0.8629 against the pound, 1.0688 against the Swiss franc, 1.0747 against the US dollar and 121.04 against the yen at around 0830 GMT.
