The S&P Global Germany Construction PMI fell to 41.6 in October 2026 from 43.5 in September, its lowest reading since March 2025. Housing remained the main drag, although its decline eased from the previous month, while commercial construction recorded its steepest contraction since July. Civil engineering activity also weakened, posting its sharpest decline in nearly two years. Meanwhile, new orders fell at the fastest pace in six months amid limited tender opportunities, tighter client budgets and cautious customer spending. Employment continued to decline, although job losses eased to their slowest pace since June. Cost pressures intensified, with input price inflation reaching a four-month high amid rising energy and oil-related costs, while subcontractor rates recorded their second-sharpest rise in almost four years. Looking ahead, business confidence weakened to its lowest level since May as subdued order books and high borrowing costs continued to weigh on expectations.