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Germany Construction Sector Growth Slows In April

Germany's construction sector expansion eased in April with slower growth in commercial, housing and civil engineering activities, data from IHS Markit revealed on Tuesday.

The construction Purchasing Managers' Index fell to 53.0 in April from 55.6 in March.

Any reading above 50 indicates an expansion in the sector.

The latest reading was the lowest since January, albeit still higher than the long-run average of 47.8.

Both housing and commercial building work expansion were the weakest for three months. Meanwhile, civil engineering activity fell in April.

New order growth weakened from a thirteen-month high in February to the worst since October last year.

Firms' optimism towards future activity fell sharply to a four-month low due to slowdown in order book growth with concerns towards the outlook for the car industry.

Higher workloads led to new job creation and constructors scaled up their purchasing activity during the month.

Cost pressures in the construction sector eased further in April. Average prices paid for building materials and products rose sharply, but at the weakest rate since last May.

The overall deterioration in vendor performance was broadly in line with the trend in 2018.

"Rates of inflation in purchase prices and charges levied by sub-contractors have eased further from their recent highs, which is probably a reflection of developments on both the supply- and demand side," Phil Smith, Principal Economist at IHS Markit, said.

Eurozone's construction PMI eased marginally to 52.1 in April from 52.2 in March.

France's construction PMI expanded to 50.8 in April from 49.0 in the prior month.

Italy's construction PMI rose to 52.5 in April from 51.2 in the previous month.

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