economic situation
A lull in construction orders
After the ray of hope in August, the latest interim results are bleak again. Construction companies in Germany are feeling the reluctance of customers.
The construction industry in Germany continues to struggle with a decline in orders. Both in September and in the first three quarters of 2024 overall, the statistics for the main construction industry show a minus.
According to the Federal Statistical Office, sales are also declining. The main construction industry includes the construction of buildings (structural engineering) as well as roads, railway lines and lines (civil engineering).
Adjusted for price increases (in real terms), companies booked 12.4 percent fewer orders in September than in August of the current year, which was more positive thanks to large orders. Compared to September 2023, there was a real decrease of 11.5 percent; in nominal terms, the decrease was 9.5 percent.
In the first nine months, calendar-adjusted incoming orders in the construction industry fell by 2.0 percent in real terms and by 0.5 percent in nominal terms compared to the same period last year. The industry’s sales in the first three quarters were 1.4 percent lower in real terms than in the same period last year; in nominal terms they increased by a minimal 0.1 percent. In September, construction companies generated nominal revenue of 10.1 billion euros.
In its latest monthly report, the Bundesbank assumes that, among other things, construction will continue to dampen economic performance in Germany: “The still increased financing costs and the pronounced economic policy uncertainty continued to weigh on investments and thus the demand for construction services and capital goods.”
Federal Statistical Office: Main construction industry 09/2024
dpa
Source: Stern
