Overview
- Germany’s construction PMI rose to 50.3 in December from 45.2, marking the first expansion since March 2022, according to HCOB.
- Civil engineering in Germany recorded its strongest growth since March 2011, residential contraction eased to the slowest since March 2022, and building permits jumped.
- German construction employment increased for a second month as firms faced slightly faster cost inflation and headwinds from still-elevated interest rates.
- The UK construction PMI registered 40.1 in December, up from 39.4 but signaling a twelfth consecutive month of contraction, with civil engineering at 32.9, housing at 33.5, and commercial at 42.0.
- UK respondents cited subdued demand, fragile client confidence and delayed spending decisions, though expectations improved to a five‑month high on hopes for infrastructure work and easing cost pressures.