Germany's construction sector downturn eased significantly in August as commercial activity returned to growth, survey results from S&P Global showed on Friday.
The construction purchasing managers' index (PMI) rose to 48.7 in August from 42.1 in July. A reading below 50 indicates contraction.
Commercial construction activity grew for the first time since July last year, albeit only marginally. The decline in residential construction eased sharply to its weakest since December 2025, while civil engineering returned to contraction.
New orders continued to fall at a marked pace in August amid high prices and elevated borrowing costs. Firms also scaled back purchasing and cut jobs at the fastest pace since April.
Meanwhile, higher oil prices contributed to an acceleration in input cost inflation for the first time in four months.
Construction firms remained pessimistic about activity over the coming year, citing a lack of new orders, pressure on disposable incomes, high costs and continued risks from the Middle East war.