German Construction Activity Plunges In January

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Markit Economics reported on Thursday that the Germany construction purchasing managers' index stood at a seasonally adjusted 40.2 in January, down from 46.8 in the previous month. A reading above 50 indicates expansion, while one below suggests contraction.

This marks the fastest fall in construction output since February 2009.

Lower levels of construction output were widely attributed to heavy snowfall during the month which disrupted construction activity. There were also reports that underlying market conditions remained unfavorable, as highlighted by falling levels of incoming new work.

German construction companies continued to cut down employment levels in January and the rate of contraction was the sharpest since July 2009. Panelists cited falling workloads and cost cutting measures for the latest round of job cuts.

Markit Economics reported on Thursday that the Germany construction purchasing managers' index stood at a seasonally adjusted 40.2 in January, down from 46.8 in the previous month. A reading above 50 indicates expansion, while one below suggests contraction. (Market News Provided by RTTNews)