Business: construction industry despite the order plane pessimistic

Business: construction industry despite the order plane pessimistic

Economy
Construction industry despite the order plane pessimistic






Falling interest rates could boost the demand for construction work. The companies also hope for the upcoming federal government.

The construction industry expects the fifth year in a row in 2025. The recently surprisingly good development in the orders does not change that.

“The construction companies have almost written off the coming months,” summarizes the location of the main association of the German Construction Industry (HDB), Peter Hübner. Whether housing or infrastructure – overall there would be too few orders.

After all, the weakening construction industry in Germany was able to look forward to an order plus in November in November in a row. The main building industry posted real growth in both October (plus 7.9 percent) and last year (plus 16.6 percent).

In addition, according to the Federal Statistical Office, November was the lowest of sales of last year at 11.5 billion euros – even if the proceeds were still below the level of 2023.

For the year 2024, however, the construction industry is expected to expect price increases (REAL) to decrease in sales of 3.5 percent in the previous year. For 2025, the HDB forecast 1.4 percent sales of sales. “The good news: the companies want to hold out and do not plan any landslides,” says building industry president Hübner.

Hardly any growth impulses from the construction sector

In the first eleven months of 2024, the calendar -cleaned order inputs decreased by price increases (real) by 0.6 percent at the same period last year. According to the Federal Statistical Office, sales were 1.1 percent lower than in the first eleven months of 2023.

In its latest monthly report, the Bundesbank assumes that the ongoing economic flaut in Germany also stems that the construction sector has hardly delivered any growth impulses at the end of the year.

Falling interest could inspire

Falling interest rates give hope to the industry: If real estate loans are cheaper, this boosts demand. The recent figures showed “that builders and investors want to build,” commented Felix Pakleppa, managing director of the Central Association of German Construction Trade (ZDB).

“The new federal government has to put housing at the top of its agenda,” demands Pakleppa. “Our industry can and wants to build significantly more than before if politics leaves us. What we need is a restart in building policy.”

The main building industry includes the construction of buildings (building construction) and roads, railway lines and lines (civil engineering).

Federal Statistical Office: main building industry 11/2024 forecast construction industry

dpa

Source: Stern

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts