The S&P Global Germany Construction PMI rose to 44.8 in June 2026 from 42.4 in May, signaling the slowest contraction in construction activity in three months. The downturn persisted across all major segments, with housing remaining the weakest performer, while declines in commercial and civil engineering activity eased. New orders continued to fall but at the slowest pace of the year, as high prices and subdued demand continued to weigh on client spending. Employment declined for a fifth consecutive month, although job cuts and purchasing activity both eased to three-month lows. Supply conditions remained challenging, with elevated input cost inflation and longer delivery times linked to the Middle East conflict and product shortages, though reports of delays eased to the lowest level in three months. Business confidence improved for a second straight month but remained negative, as firms continued to cite high costs, tight customer budgets, and weak market confidence.

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