FX.co ★ Germany’s Construction Downturn Eases Slightly as HCOB PMI Edges Up in May

Germany’s construction sector showed a marginal easing of its downturn in May, as the HCOB Germany Construction PMI inched up to 42.4 from 42.1 in April 2026.

Despite the uptick, the index remains well below the 50.0 threshold that separates expansion from contraction, indicating that activity in the construction industry is still shrinking, albeit at a slightly slower pace than in the previous month. The modest improvement suggests that while headwinds persist for builders and developers, the pace of decline may be stabilising.

The latest data, released on 4 June 2026, will be closely watched by investors and policymakers for signs of whether Germany’s construction slump is bottoming out or merely pausing before further weakness ahead.