German construction downturn deepens in July, PMI drops to 42.1

Germany's construction sector downturn deepened in July, with S&P Global's Purchasing Managers' Index falling to 42.1 from 44.8, the lowest reading in three months. Housing activity fell at the fastest rate in three months, while commercial building dropped faster. Civil engineering rose. New orders declined due to high prices and delayed decisions; job losses continued for the sixth month. Input price inflation slowed from April's peak to its lowest since February, but firms stayed pessimistic about the coming year and cut purchasing activity further.