May’s slight uptick in Germany’s construction sector signals ongoing contraction but at a marginally slower pace.
Germany’s construction Purchasing Managers’ Index climbed to 42.4 in May from a prior 42.1, remaining below the 50 threshold that separates contraction from expansion. The reading reflects persistent weakness in the sector amid high borrowing costs and subdued demand.
The prior month’s print stood at 42.1, with the sector mired in contraction for over a year. Analysts had anticipated a modest improvement, though the uptick remains marginal and far from signaling a rebound.
No immediate market reaction was reported following the release.