Construction orders in Germany rose surprisingly sharply in July

Adjusted for inflation, new business in the construction industry grew by 9.6 percent (in real terms) compared to the previous month, as the Federal Statistical Office announced on Monday. The last time there was a stronger increase was in December 2021. The balance for the first seven months of the year is much worse: here orders fell by 10.7 percent in real terms compared to the same period last year.

Civil engineering grew particularly strongly

New business in civil engineering, which includes road construction, for example, grew particularly strongly this time: in July, incoming orders rose by 14.6 percent in real terms compared to the previous month. Several large orders contributed to this, the statisticians explained. Building construction – which is primarily characterized by residential construction – reported an increase of 4.4 percent.

Sales in the construction industry increased slightly in July. Due to the sharp increase in construction prices, it increased by 6.3 percent compared to the same month last year to 10.3 billion euros. Adjusted for inflation, however, there was only a real increase of 0.2 percent. From January to July, real sales actually fell by 4.5 percent compared to the same period last year. Nevertheless, the number of employees in the construction industry was 1.3 percent higher in July than a year earlier.

The construction industry insists on a comprehensive package

The German government has invited people to the housing summit in the Chancellery this Monday. The aim is to find ways out of the housing crisis. Experts warn that the federal government’s target of 400,000 new apartments annually will likely be missed again this year. German Chancellor Olaf Scholz and Construction Minister Klara Geywitz (both SPD) have invited dozens of associations to ensure more affordable housing. The industry is insisting on a comprehensive package, but fears that it will be fobbed off with smaller amounts of aid due to the tight budgetary scope.

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