Germany’s construction sector continued to decline in August, marked by substantial decreases in housing and commercial projects, according to survey results from S&P Global released on Thursday.The Construction Purchasing Managers’ Index (PMI) dropped to 38.9 in August, down from an 11-month high of 40.0 in July, marking the lowest score since May. A PMI reading below 50.0 indicates contraction, and the latest figure falls below the average recorded since the downturn began in April 2022.”The construction sector is solidifying its deeper recession trajectory,” said Hamburg Commercial Bank Chief Economist Cyrus de la Rubia. “The European Central Bank’s cautious approach to rate cuts—we anticipate a second cut on September 12th—appears insufficient to alleviate the current pressures on builders.”Housing activity saw the steepest decline since April, while commercial building projects experienced the fastest fall since the year began. Meanwhile, the civil engineering sector recorded its smallest decline since February.The survey also highlighted increased job cuts, despite a slower reduction in new orders and a slightly improved outlook among firms for the coming year.On the pricing front, data indicated that price pressures have eased across the construction sector. This easing is attributed to a consecutive five-month decrease in purchasing costs and a renewed reduction in subcontractor rates.The material has been provided by InstaForex Company – www.instaforex.com
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