FX.co ★ German Construction Downturn Eases

The S&P Global Germany Construction PMI increased to 48.0 in March 2026 from 43.7 in February, indicating that the sector’s overall contraction eased. Housing activity declined at its slowest pace so far this year, while civil engineering recorded a faster expansion. Commercial construction remained the weakest segment, although its downturn moderated slightly. Employment and purchasing activity also fell more slowly than in February.

However, new orders decreased at the sharpest rate since July 2025, reflecting softer demand and cost pressures associated with the Middle East conflict. Input prices posted a record monthly rise—the steepest increase since October 2022—driven by higher energy, fuel, and transport costs. Supply chain conditions deteriorated, with lead times for building materials stretching to their longest in almost three-and-a-half years. Business expectations weakened markedly, turning negative for the first time in 2026, as construction firms highlighted rising costs and subdued demand as key concerns.