Half of Germany’s Residential Construction Companies Are Short on Orders
Residential construction in Germany is experiencing an order shortage. More than half the companies (55.2%) in this industry reported a lack of orders in April. In March, the figure was 56.2%. “Housebuilders are looking for signs of hope,” says Klaus Wohlrabe, Head of Surveys at ifo, “but there’s no end to the crisis in sight.”
The large number of cancellations also remains a major problem. In April, 17.6% of building construction companies reported cancellations, down from 19.6% in March. Although the business climate in residential construction rose significantly, it remains deep in negative territory. Expectations are far from optimistic. “The lack of orders is causing many companies to reduce their prices,” Wohlrabe says.
In civil engineering, 22% of companies reported a lack of orders. Companies there are also considerably more satisfied with their current business. “Civil engineering’s outlook for the coming months is markedly skeptical, but less so than that of building construction,” Wohlrabe says.
