--- source: HCOB (S&P Global) url: https://www.pmi.spglobal.com/public document_type: economic release date_retrieved: 2026-03-05 period: February 2026 parent_publication: HCOB Construction PMI indicators_covered: [Construction PMI, Housing Activity, Commercial Activity, Civil Engineering, New Orders, Employment, Purchasing, Input Prices] actual: 43.7 previous: 44.7 forecast: null --- # Germany Construction PMI, February 2026 **Release Date:** 5 March 2026, 08:30 GMT **Period:** February 2026 **Source:** HCOB (Hellenic Construction Business Indicator), S&P Global --- ## Headline Germany's **Construction PMI fell to 43.7** in February 2026, down from 44.7 in January 2026, signaling continued contraction in the construction sector. This marks back-to-back decreases in German construction activity to start the new year, following a brief return to growth at the end of 2025. --- ## Key Findings ### Sectoral Performance **Housing Activity:** The residential sector experienced the sharpest decline in three months, with the recession worsening again. Weak underlying demand and severe winter weather contributed to the contraction. **Commercial Activity:** Activity in commercial construction continued to fall rapidly, though the pace of decline slowed only marginally compared to January. **Civil Engineering:** This sub-sector recorded continued growth for the fourth consecutive month, though the pace of expansion has slowed significantly from prior months. ### Employment and Staffing Employment fell in February, marking the **end of a three-month period of job creation**. This decline occurred at the fastest pace since June 2025 and was partly attributed to harsh winter conditions affecting construction work. ### Orders and Demand The slump in new orders **deepened further in February**, recording the **quickest rate of decline in six months**. This weakness is the primary factor suggesting unlikely near-term growth in residential and commercial construction segments. ### Input Prices and Costs Average prices paid for purchases **increased at a five-month high**, driven by: - Elevated diesel costs linked to Middle East tensions - Higher material costs across the sector - General inflationary pressures on construction inputs Subcontractors, while experiencing weak demand and general availability, also continued to increase their prices, albeit at a lesser extent than in the prior month. ### Supplier Conditions Purchasing activity **declined sharply**, recorded at the **fastest rate in six months**. Supplier delivery times lengthened for the fifth consecutive month, indicating ongoing supply chain challenges. --- ## Forward Outlook **Business Confidence Brightens:** Against the challenging current conditions, one positive signal emerged—business expectations reached their **highest level since February 2020**, with the future activity index rising well above 50 points. This improvement is attributed to: - Ongoing and planned infrastructure projects providing forward visibility - Expectation of milder winter weather enabling more construction activity - Structural confidence in medium-term demand recovery However, HCOB cautioned that near-term growth remains unlikely for residential and commercial construction given the depth of current order declines. --- ## Official Commentary HCOB issued the following analysis of February conditions: > "The recession in the residential sector has worsened again. Activity in commercial construction continues to fall rapidly, with the pace of decline slowing only marginally. In contrast, civil engineering has seen higher construction activity for the fourth month in a row. However, the pace of expansion has slowed significantly recently. > > Overall, the deterioration in the construction sector is also related to the relatively harsh winter, which is likely to have contributed to job losses after more staff had been hired in the previous months. > > There is unlikely to be any growth in residential and commercial construction in the coming months. This is because the slump in new orders deepened further in February. Companies were also under pressure from particularly sharp rises in purchase prices. Higher diesel prices, among other things, are likely to have played an important role here. The war in the Middle East, which has propelled oil prices higher, does not bode well for inflationary pressures in the near future. > > Subcontractors are also suffering from weak demand, with even less work than in the previous month and generally considered to be more readily available. However, in view of rising material costs, subcontractors have also continued to increase their prices, albeit to a lesser extent than in the previous month. > > One ray of hope is the renewed brightening of the outlook for the future. Against the backdrop of ongoing and planned infrastructure projects and the expectation that next winter will allow for more construction activity, the value of the future activity index has risen to its highest level since 2020 and well over 50 points." --- ## Technical Details **Index Interpretation:** - **Below 50.0:** Indicates contracting activity - **Above 50.0:** Indicates expanding activity - **Exactly 50.0:** No change from prior month **Survey Methodology:** The HCOB Construction PMI is based on original survey data collected from a representative panel of over 200 companies in the German construction sector. Data are collected at mid-month, asking respondents to compare construction conditions with the situation one month prior. **Panel Coverage:** Respondents assess: - Construction activity levels - New orders received - Employment changes - Purchasing activity - Supplier delivery times - Input prices and cost pressures **Sectors Covered:** - Residential construction - Commercial construction - Civil engineering --- ## Macroeconomic Context The February 2026 release reflects challenging operating conditions for German construction despite a brief recovery phase at year-end 2025. Key headwinds include: 1. **Demand Weakness:** Residential and commercial segments remain under pressure from financing constraints and cautious spending 2. **Weather Impact:** Harsh winter conditions disrupted activity and contributed to employment reductions 3. **Geopolitical Inflation:** Middle East tensions elevating commodity prices (diesel, materials) 4. **Interest Rate Environment:** Continued tight financial conditions affecting construction investment **Offsetting Factors:** - Civil engineering showing resilience (fourth consecutive month of growth) - Infrastructure spending and public works providing some demand base - Rising business optimism suggesting confidence in 2026 recovery potential --- ## Related Indicators This release is part of the monthly HCOB Construction PMI publication from S&P Global, covering Germany as one component of the broader European and global construction PMI survey. Related indicators include: - **Manufacturing PMI** (Germany, Feb 2026): 50.7, signaling return to expansion - **Services PMI** (Germany, Feb 2026): 53.5, indicating robust service sector activity - **Composite PMI** (Eurozone, Feb 2026): Showing resilience with global momentum at 21-month highs --- ## Data Quality Note This is a flash estimate release based on mid-month survey responses from the panel of construction purchasing managers. Final detailed data with full sub-index breakdowns are typically published one week later. --- *Document prepared from HCOB press release and S&P Global market intelligence, March 5, 2026*