The S&P Global Germany Construction PMI Total Activity Index fell to 43.5 in September 2026 from August’s eight-month high of 48.7. Renewed weakness in housing activity was the notable drag, with activity recording its steepest rate of decline since December 2024 after showing signs of steadying in August, while commercial activity also suffered a fresh setback following a brief return to growth. Meanwhile, civil engineering activity fell marginally. New orders continued to decline, albeit with the rate of contraction easing to its weakest in three months. This led constructors to scale back purchases of building materials and products, while the latest reduction in employment was the most pronounced since April. Cost pressures also intensified, with faster increases in both average input costs and subcontractor rates. Looking ahead, constructors remained pessimistic about the outlook for activity over the next 12 months.