European Construction Sector Contracts Amid Rising Input Costs

Articles · 8

• Forexlive6/3/2026, 7:55:04 AM
  Germany May final services PMI 48.1 vs 47.8 prelim

  Germany's final May services PMI came in at 48.1, slightly above the 47.8 preliminary estimate but still in contraction territory, up from 46.9 in April. The composite PMI also edged up to 48.8 vs. 48.6 prelim. Business activity fell for a second consecutive month, though at a slower pace, while 12-month expectations rebounded from April's low.

  Sentiment 0.10Sim 93%
• Forexlive6/1/2026, 7:55:03 AM
  Germany May final manufacturing PMI 50.1 vs 49.9 prelim

  Germany's final May manufacturing PMI came in at 50.1, slightly above the preliminary reading of 49.9 but down from 51.4 in April, indicating the sector has essentially stalled. New orders fell for the first time in 2026, cost pressures hit their highest since June 2022, and job cuts accelerated to the fastest pace since early 2025. The data confirms that prior growth driven by order frontloading has faded, with underlying demand weakening amid elevated uncertainty and rising prices.

  Sentiment -0.40Sim 95%
• Forexlive5/21/2026, 7:30:04 AM
  German business activity falls for a second consecutive month amid rising cost pressures

  Germany's flash PMI data for May showed a second consecutive monthly contraction in business activity, with the Composite PMI at 48.6 and Manufacturing PMI missing expectations at 49.9 versus 51.0 forecast. Rising input cost pressures linked to the effective closure of the Strait of Hormuz are squeezing margins, while employment fell at its fastest rate in over 18 months. S&P Global warns the German economy is on course to contract in Q2, with stagflation risks intensifying.

  Sentiment -0.40Sim 91%
• Forexlive5/7/2026, 8:30:15 AM
  UK construction output slumps in April, posts steepest decline since November 2025

  UK Construction PMI collapsed to 39.7 in April, far below the 45.6 consensus and prior reading, marking the steepest decline since November 2025. New business fell sharply across civil engineering and house building, with firms citing elevated uncertainty tied to the Middle East conflict. Input cost inflation accelerated at the fastest pace since June 2022, driven by higher transportation costs and supply chain disruptions from the Gulf region.

  Sentiment -0.50Sim 81%
• Forexlive5/7/2026, 7:30:09 AM
  German construction activity slumps hard in April as cost pressures continue to build

  Germany's construction PMI collapsed to 42.1 in April from 48.0 in March, marking a sharp slide deeper into contraction territory. The decline was broad-based, led by housing and commercial activity, with new orders falling at their fastest pace in over a year amid customer hesitancy and surging input costs. Input cost inflation reached its highest level since May 2022, driven by elevated energy, fuel, and commodity prices linked to the Middle East conflict.

  Sentiment -0.30Sim 93%
• Forexlive5/6/2026, 7:55:06 AM
  Germany April final services PMI 46.9 vs 46.9 prelim

  Germany's April final Services PMI was confirmed at 46.9, matching the preliminary estimate but down sharply from 50.9 in March, signaling the steepest contraction in services activity in nearly three and a half years. The final Composite PMI came in at 48.3, also below the prior 51.9 reading. S&P Global notes rising recession risk for Q2, with demand weakening and output price inflation hitting a 26-month high driven largely by the transportation sector.

  Sentiment -0.40Sim 92%
• Forexlive5/5/2026, 1:45:51 PM
  US S&P Global PMI services for April 2026 51.0 versus 51.3 expected

  The final US S&P Global Services PMI for April 2026 came in at 51.0, below the 51.3 preliminary estimate and consensus, though up from 49.8 in March, signaling a return to marginal expansion. New orders contracted for the first time since April 2024, with export orders falling for a fifth consecutive month, while input costs hit their highest level of 2026 and selling prices rose at the fastest pace in nine months. S&P Global's chief economist noted GDP is tracking at roughly 1% annualized growth and flagged further downside risk from war-related demand weakness and mounting inflation pressure on the Fed.

  Sentiment -0.20Sim 85%
• Forexlive5/4/2026, 7:55:05 AM
  Germany April final manufacturing PMI 51.4 vs 51.2 prelim

  Germany's April final manufacturing PMI came in at 51.4, slightly above the 51.2 preliminary estimate but below the prior reading of 52.2. Output and new orders continued to grow, driven largely by frontloading activity amid supply concerns, while business expectations turned negative for the first time in 18 months. Cost pressures and supply delays reached their worst levels since 2022, with factory gate price inflation hitting a three-year high.

  Sentiment -0.20Sim 90%