German construction growth registers slight slowdown in October

Growth in the German construction sector continued at a slightly slower pace in October, figures released on Thursday showed.

The latest Markit purchasing managers’ index indicated German constructors reported a rise in activity for the ninth successive month, although the headline index declined slightly from 52.4 in September to 51.8 last month.

Across the three categories covered by the survey, the commercial building sector saw output grow at the sharpest rate, while housing activity also expanded during the month, albeit at its slowest pace since January.

However, the civil engineering sector notched its seventh consecutive monthly decline, while new business declined at its slowest rate in the current five-month period of contraction.

Employment also continued to increase, with the latest rise in workforce numbers the strongest since April.

The data showed that 15% of surveyed companies added to their payrolls, while only 5% signalled job shedding.

“While the pace of expansion in construction output slowed since September, growth has now been reported in each of the past nine months,” said Markit’s economist Oliver Kolodseike.

“However, the data also suggested that housing activity increased only fractionally, while civil engineering output declined further.”