Germany's construction sector expanded at the fastest pace in nine months in December, survey data from IHS Markit showed Tuesday.
The construction Purchasing Managers' Index rose to 53.8 in December from 52.5 in November. This was the highest score since March.
The overall improvement was driven by strong increase in homebuilding. Residential project work grew for the fourth month in a row and to the greatest extent since March.
Meanwhile, commercial activity stabilized after falling in each of the previous five months. At the same time, civil engineering declined for the ninth month in a row.
Overall inflows of new work increased for the second straight month. Higher activity led to an increase in payroll numbers, which was the fastest since the first quarter of 2019.
Looking ahead, constructors are downbeat about the outlook for activity over the coming year. Sentiment decreased deeper into negative territory to reach its lowest level since the end of 2014.