The S&P Global Germany Construction PMI fell to 43.5 in September 2026 from August’s eight-month high of 48.7. The renewed downturn in housing activity was a key drag, with the sector recording its steepest contraction since December 2024 after showing signs of stabilization in August. Commercial activity also suffered a fresh setback following a brief return to growth, while civil engineering activity fell marginally. New orders continued to decline, albeit at the slowest pace in three months. Weaker demand prompted constructors to reduce purchasing activity and cut their workforce, with employment declining at the fastest pace since April. Cost pressures also intensified, with both input costs and subcontractor rates rising at faster rates. Meanwhile, constructors continued to report delays, although the degree to which lead times lengthened was the least marked since last December. Looking ahead, constructors remained pessimistic about the outlook for activity in the year ahead.