German Construction Sector Contracts Again

German Construction Sector Contracts AgainLess than 1 min readThe HCOB Germany Construction PMI fell to 43.7 in February 2026 from 44.7 in January, signaling a further contraction at the start of the year.Housing and commercial construction declined sharply, while civil engineering continued to expand for the fourth consecutive month, albeit at a slower pace than in December.New orders fell at the fastest rate in six months, reflecting weak demand and some disruption from severe winter conditions.Employment in the construction sector decreased, ending a three-month sequence of job creation, while purchasing activity dropped at the fastest pace in six months.Supplier delivery times lengthened to the greatest extent in three years, and input price inflation accelerated to a five-month high.Despite these challenges, business expectations for the next 12 months rose to the highest level since February 2020, supported by planned infrastructure projects and hopes of a milder winter.BusinessEconomyLaborPricesTrading EconomicsLogin or create a forever free account to read this newsLet's goMore news from Trading Economics