German construction activity rebounds for the first time since 2022

According to a latest survey targeting construction procurement managers, German construction activity finally resumed growth in December, marking the first rebound since March 2022.

The Hamburg Commercial Bank (HCOB) German Construction Purchasing Managers' Index (PMI) rose to 50.3 in December (above 50.0 indicates activity growth), a significant increase from November's 45.2. The increase in civil engineering activities has boosted overall data, with the field recording its strongest expansion rate since March 2011.

At the same time, the HCOB survey shows that the drag of housing construction on overall activity has "significantly eased". Residential project construction is declining at the slowest pace since March 2022. Commercial architecture has become the weakest performing field in Germany, experiencing a significant decline once again. Due to a lack of bidding opportunities, new orders are still decreasing, but at the slowest pace since March 2022.