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Economic Buzz: German construction sector continues to shrink

04-Jul-25 14:05 Hrs IST

Germany's construction sector remained in the contraction territory in June due to the deterioration in housing activity, survey data from S&P Global showed on Friday.

The construction Purchasing Managers' Index posted 44.8 in June, up from 44.4 in May. A score below 50.0 indicates contraction.

That said, it was the second-highest score in over two years behind April's recent high.

At the sub-sector level, civil engineering returned to growth for the first time since August 2023. Moreover, activity logged its fastest growth in more than three years.

The decline in work on commercial projects eased to the weakest for just over two years. By contrast, the housing sector registered an accelerated decline that was the steepest in three months.

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