German construction growth regains momentum
Growth in the German construction sector picked up in February following a weather-related blip at the start of the year.
There was stronger growth in all three construction categories and new orders rose at second-fastest rate since the Purchasing Managers’ Index (PMI) survey began in 1999.
Employment and purchasing both increased at faster rates, while the 12-month outlook remained historically strong.
The PMI – which is based on a single question asking respondents to report on the actual change in their total construction activity compared to one month ago – rose from a five-month low of 52.0 in January to 54.1 in February. The latest figure signalled a strong overall rise in German construction activity, and extended the current survey-record sequence of expansion to 25 months. Some firms commented that business had recovered following a very cold January.
Trevor Balchin, senior economist at IHS Markit said: “The German construction sector experienced a revival in growth in February, following a slowdown at the start of the year that partly reflected very cold weather.
“The acceleration in growth reflected faster expansions in all three monitored areas of construction, with civil engineering posting one of the sharpest increases in activity in the survey history. Moreover, the volume of new work rose at the second-fastest rate on record, underpinning a firmly positive outlook for the sector.”
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This article was published on 6 Mar 2017 (last updated on 6 Mar 2017).