(RTTNews) - Germany’s construction sector activity continued to decline in October, due to falling new orders, a survey by Markit Economics said Thursday. Moreover, the drop was the steepest in four months.

The seasonally adjusted construction purchasing managers’ index or PMI stood at 43.3, well below the no-change level of 50. A reading above 50 indicates expansion, while a reading below 50 signals a contraction.

Commercial activity contracted sharply, while civil engineering showed the biggest decrease since February. Moreover, housing construction activity fell further in October.

New orders dropped for the 20th consecutive month, but slower than in September, and much slower than the record fall seen in January. Lack of new work in turn caused the employment levels to fall, extending the decline that began in April 2008. However, the rate of contraction was more subdued compared to the rate of job shedding between 2001 and 2005, Markit said.

Meanwhile, input costs rose for the third consecutive month, with the input inflation hitting a 13-month high in October, but weaker than the long term average. At the same time, there was a deterioration in the average supplier performance, with lead times increasing at the most marked pace since September 2008. Longer delivery times was attributed to shorter working hours at vendors, as input prices were still weak, Markit noted.

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