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Germany Construction Growth At 6-Month High

Germany's construction activity rose at the fastest pace in six months in October, amid a rise in homebuilding, survey data from IHS Markit showed on Thursday.

The construction purchasing managers' index, or PMI, rose to 51.5 in October from 50.1 in September. Any reading above 50 indicates expansion in the sector.

Among sub-sectors, homebuilding rose for the second straight month in October and at the fastest rate since April. Meanwhile, the commercial activity declined for the fourth straight month and the civil engineering fell for the seventh month in a row.

New orders softened with weaker civil engineering and commercial activity. Job creation increased at the slowest pace in one year.

Input price inflation was the second-slowest seen in over the past three-and-a-half years. Meanwhile, sub-contractor rates rose slightly since the beginning of 2017.

Expectations remained close to August's near four-year low, as surveyed businesses reporting ongoing concerns about the impact of the manufacturing slowdown on demand for new commercial building projects in the year ahead, the survey reported.

"With much uncertainty around future developments in the manufacturing sector and business investment in general, it seems building firms are being more conservative in their hiring amid doubts about the number of new project starts in the coming months," Phil Smith, principal economist at IHS Markit, said.

Separate data from the IHS Markit showed that the Eurozone construction sector expanded for the second straight month in October. France and Italy's construction sector growth eased slightly in October.

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