Latest data released by Markit – 5 August 2021
Supply shortages continue to weigh on German construction activity last month, with activity and new orders both seeing a decline. Meanwhile, employment conditions suffered at the quickest pace since October last year. Markit notes that:
“Construction activity in Germany remained deep in
contraction territory in July as the sector continues to
be constrained by supply bottlenecks and sharp rates
of inflation. Cost have risen at record rates over the last
four survey periods, with the pace of increase quickening
sharply in July.“Meanwhile, civil engineering and commercial activity
saw solid declines once again. The only real area of
encouragement is housing, where its recovery gained
momentum.“Constructors remain widely pessimistic about their
growth prospect, with shortages at the centre of
negativity. With supply chain pressures expected to
persist, and COVID-19 cases rising across the globe, we
are likely to see sharp price pressures continue as we
head into the second half of the year.”