FX.co ★ Germany’s Construction Sector Slips Back into Contraction as HCOB PMI Falls to 44.7 in January

Germany’s construction industry moved back into contraction at the start of 2026, as the HCOB Germany Construction Purchasing Managers’ Index (PMI) dropped to 44.7 in January 2026 from 50.3 in December 2025.

The December reading of 50.3 had signalled a marginal expansion in activity, hovering just above the neutral 50 threshold that separates growth from contraction. January’s decline to 44.7, however, points to a renewed and more pronounced slowdown in the sector.

The latest data, updated on 5 February 2026, suggest that momentum in Germany’s construction industry has weakened again after a brief stabilisation at the end of 2025, underscoring ongoing challenges for one of the key pillars of Europe’s largest economy.