The headline reading is the highest in two years as German construction activity bounces back solidly to start the new year. The details reveal a jump in new work with an accelerated increase in employment. The only downside in the report is that inflation Read this Term
“The construction sector has enjoyed a strong opening quarter so far, with the latest PMI survey pointing to the best performance for two years in February.
“Unlike in January, when growth was firmly centred on the residential sector, the latest increase in activity was more evenly balanced across each of the main construction segments as work on both commercial and civil engineering projects picked up sharply.
“Constructors have stepped up their efforts to expand capacity in recent months, which is reflected in the fastest increase in employment for two years in February. But at the same time, builders are being hit head-on by rising costs, including an unprecedented increase in subcontractor rates and a renewed upturn in input price inflation.
“The outlook for the construction sector has darkened, with the optimism seen in January proving to be short-lived. Concerns have grown around the outlook for inflation and supply chains, while the conflict in Ukraine also threatens to weigh on confidence and therefore demand for new construction projects.”
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