FX.co ★ Germany Construction Activity Falls to 19-Month Low

The S&P Global Germany Construction PMI dropped to 41.6 in October 2026 from 43.5 in September, marking its lowest level since March 2025. Housing remained the principal drag on activity, though the rate of decline there eased slightly from the previous month. In contrast, commercial construction registered its sharpest contraction since July, while civil engineering activity also weakened, recording its steepest downturn in nearly two years.

New orders fell at the fastest rate in six months, reflecting a shortage of tender opportunities, tighter client budgets, and more cautious spending by customers. Employment in the sector continued to decline, although the pace of job losses slowed to its weakest since June.

Cost pressures intensified: input price inflation hit a four-month high, driven by rising energy and oil-related costs, and subcontractor rates saw their second-strongest increase in almost four years. Looking ahead, business confidence slipped to its lowest point since May, as subdued order books and elevated borrowing costs continued to dampen expectations.