According to the latest PMI data from IHS Markit, German construction activity continued to rise in January, though severe bad weather in parts of the country saw the rate of expansion slow compared with the relatively mild December.

The headline seasonally adjusted Germany Construction PMI – a measure of changes in total industry activity – slip to 50.7, down from 53.3 in December and its lowest reading in the current three-month sequence of growth

New order growth was robust but also eased, as did the rates of increase in employment and constructors' buying levels. Despite the slowdown, constructors remained confident about the prospect of activity rising in the next 12 months. On the cost front, constructors faced steep and accelerated rises in both sub-contractor rates and average purchase prices, with the latter reportedly driven up by increased energy costs and road toll charges.