Germany’s construction sector continued to contract in December, albeit at a softer pace, survey data from IHS Markit showed Thursday.
The construction Purchasing Managers’ Index rose to 47.1 in December from 45.6 in November.
The latest reading was the highest in four months. Any reading below 50.0 indicates contraction in the sector.
Housing activity grew in December, though the pace of expansion eased since November. Meanwhile, commercial activity and work on civil engineering declined.
Employment decreased marginally in November, while purchasing levels rose for the first time since February last year.
The rate of purchase price inflation surged to the highest since February last year.
The 12-month outlook weakened in December due to the worries about the hit to client demand from the pandemic.
“December’s construction data pointed to increasing signs of stability after a challenging period for the sector, with the headline PMI moving to a four-month high and new orders showing the smallest decline since the start of the pandemic,” Phil Smith, associate director at IHS Markit, said.
Separate data from IHS markit showed that the France’s construction PMI fell to 40.5 in December from 42.8 in November.
Italy’s construction PMI rose to 50.5 in December from 49.8 in the prior month.
Eurozone’s construction PMI declined marginally to 45.5 in December from 45.6 in the previous month.