A survey from IHS Markit showed on Thursday that the German construction sector grew the most in 14 months in March, led by strong gains in residential and commercial activity that boosted job creation.
IHS Markit’s purchasing managers’ index for the German construction sector rose to 55.6 in March from 54.7 in February, marking the highest reading since January 2018.
A PMI reading above 50 suggests expansion in the sector.
New orders in the construction sector grew for the seventh straight month and the rate of job creation was the quickest since January 2018. Business optimism was the strongest since April last year and purchasing activity also increased.
Civil engineering work grew for a third straight month, albeit at a slower pace.
Transport costs and wage pressures increase in March, and input price inflation remained sharp, despite easing to a 10-month low.
“With growth in total industry activity picking to a 14-month high in March, the data show the construction sector’s best quarterly performance since Q3 2017,” IHS Markit Principal Economist Phil Smith said.
“With the level of construction work increasing alongside strong growth in services activity, it leaves manufacturing – which has the greatest exposure to external headwinds – as the only area of concern in the German private sector.”
The material has been provided by InstaForex Company – www.instaforex.com