The HCOB Germany Construction PMI rose to 46.3 in July 2025 from 44.8 in June, indicating the slowest contraction in the sector since February 2023. The improvement was mainly driven by a renewed rise in commercial construction, the first expansion since April 2022, while the decline in housing activity eased to a three-month low. However, civil engineering activity returned to contraction. New orders fell sharply, with firms citing high costs and weak client demand, prompting the fastest drop in purchasing since March and continued job cuts, though staff reductions eased to a four-month low. Input costs rose for the fifth month but at a slower pace than in June, while subcontractor charges increased amid improved availability. Supplier delivery times also shortened again due to weak demand. Lastly, business confidence remained slightly pessimistic but improved from the previous month, with firms particularly cautious about the outlook for housing and the broader economy.