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Economic Buzz: German construction activity expands for first time in nearly 4 years
07-Jan-2026 16:05
Germany's construction sector expanded for the first time since early 2022 on rebound in civil engineering activity, purchasing managers' survey results from S&P Global showed on Wednesday.

The construction Purchasing Managers' index posted 50.3 in December, up from 45.2 in November. A score above 50.0 indicates expansion.

The index has remained above the 50 no-change mark since March 2022. The upturn was primarily driven by strong growth in civil engineering activity.

Civil engineering activity expanded for the fifth time in the past seven months and at the quickest rate in almost 15 years. At the same time, the drag on total activity from the housing sector eased considerably. Commercial construction remained the weakest-performing category.

New orders continued to decline in December but at the least marked pace since March 2022. Firms' expectations towards activity in the year ahead remained subdued.

Employment in the sector increased for the first time in over three-and-a-half years.

On the price front, the survey showed that input price inflation hit a three-month high. Rates charged by subcontractors climbed markedly and at the quickest rate for more than two-and-a-half years.

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