German HCOB Construction PMI (Dec) 50.3 vs. Exp. 47 (Prev. 45.2)

The German HCOB Construction PMI for December came in at 50.3, exceeding expectations of 47 and rising from the prior 45.2, indicating a stronger than anticipated performance in the construction sector.

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German HCOB Construction PMI (Dec) 50.3 vs. Exp. 47 (Prev. 45.2)

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  • "Growth hiccups are still possible in civil engineering in 2026, but as the year progresses, the growth path should stabilize as more projects get underway. This trend will likely mean that resources from less busy construction segments will increasingly be deployed in civil engineering."
  • "Building continues to get more expensive. Construction costs rose a bit more sharply in December than in the previous month. Combined with relatively high long-term interest rates, which is a key factor, especially for residential construction, this acts as a dampener. And given the ECB’s communication, short-term rates aren’t expected to fall anytime soon, which doesn’t help either.” 
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This suggests a potential stabilization in growth, particularly in civil engineering, although rising costs and high interest rates remain significant headwinds, impacting residential construction and overall sector sentiment moving forward.

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