German construction sector sees strong growth in October

Munich-based bank IHS Markit said its Purchasing Managers’ Index (PMI) reading for the P.C.E. index, which takes monthly business conditions in Germany’s construction sector into account, surged to 51.2 in October from 50.6 in September. October’s figure marked the fourth month-on-month rise in a row, IHS Markit said, adding that PMI reading are similar to other indicators such as IHS Markit’s composite PMI, which also hit a four-month high of 55.5 in October. “The construction sector on the whole continues to thrive, with workloads expanding at the strongest rate in three years,” said Tim Moore, chief business economist at IHS Markit. The ECB has warned of the risks to eurozone growth from a tight job market but is wary of an overheating housing market, which could also pose a risk.

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