Compared to the same month last year, orders in the main construction trades were 2.7 percent lower. Nevertheless, there is no slump in sales. Why is that?
The construction industry in Germany received fewer orders in June. Adjusted for calendar and seasonal effects as well as price increases, companies received 2.0 percent fewer orders than in May, as reported by the Federal Statistical Office.
Compared to the same month last year, orders were 2.7 percent lower. Residential construction was particularly weak with a minus of 12.3 percent. However, the significant increase in construction prices resulted in a nominal increase in order values of 5.5 percent.
For the first time in the current year, the slump in sales of the past few months on the construction sites did not continue. Adjusted for price, revenue in the month was 2.2 percent higher than in June 2022. Including price increases, it was 8.4 percent more than a year earlier at 10.3 billion euros.
In the entire first half of the year, however, the industry had to cope with a drop in sales of 5.5 percent in real terms compared to the previous year. However, the high construction prices led to a nominal increase in sales of 5.5 percent.
Source: Stern
