New orders for the German construction industry rose 3.3% in May compared to the previous month, adjusted for inflation, according to data from the Federal Statistical Office (Destatis).
The increase was primarily driven by a strong recovery in civil engineering projects, which helped offset softer demand in other segments of the building sector.
The uptick in order intake coincided with a return to hiring within the industry, signaling that firms are responding to the improved pipeline of work.
This development offers a counterpoint to broader labor market softness seen elsewhere in Europe, where recent data from the US and South Korea showed mixed or stabilizing employment trends.
The German construction sector has faced headwinds in recent months due to high financing costs and regulatory delays.
The May data suggests that public infrastructure spending and civil engineering contracts are providing a stabilizing floor for the industry, even as residential and commercial building activity remains under pressure.