Rebound in Germany’s construction sector decelerates further in April

In April, Germany’s construction sector’s improvement decelerated further. Building activity rose at a weaker but above average rate, noted Markit. German firms continue to increase their purchasing activity at a noticeable rate. Germany’s seasonally adjusted construction PMI fell to 53.4 in April from March’s figure of 55.8. The index indicates that German construction output is growing moderately at the beginning of Q2. According to certain panellists, favorable weather and increasing demand underpinned the higher activity.

Even if the growth was recorded throughout all the three categories of construction activity, growth decelerated sharply in civil engineering and commercial sub-sectors. Meanwhile, the growth in total construction activity was mainly driven by the residential building sector activity. Overall the pace of expansion continues to be strong in spite of slowing, said Markit.

Further growth in business placed with German constructors supported the current building activity growth in April. New orders inbound have grown for five straight months. Meanwhile, firms continued to hire employees in April; however the employment growth rate in the sector decelerated to a five-month low. Building firms in Germany anticipate activity at their units to grow in the following 12 months, noted Markit.