FX.co ★ German Construction Sector Contracts Again

The HCOB Germany Construction PMI declined to 43.7 in February 2026 from 44.7 in January, indicating a deeper contraction at the start of the year. Activity in both housing and commercial construction fell sharply, while civil engineering continued to grow for the fourth consecutive month, though at a slower rate than in December. New orders posted their steepest decline in six months, reflecting subdued demand and some disruption caused by severe winter weather. Employment in the construction sector decreased, ending a three-month period of job growth, and purchasing activity contracted at the fastest pace in six months. Supplier delivery times lengthened to the greatest extent in three years, and input cost inflation accelerated to a five-month high. Despite these headwinds, business expectations for the next 12 months improved to their strongest level since February 2020, underpinned by planned infrastructure projects and hopes for a milder winter.