Construction industry weakens in Germany
The study attributes this decline primarily to weaknesses in residential construction, with sales expected to plummet by 12% in real terms. Additionally, public construction works are forecasted to underperform compared to initial expectations.
This adds to the overall gloomy forecast for construction in Europe's largest economy, which is grappling with challenges such as rising interest rates, heightened inflation, and economic stagnation.
Peter Huebner, President, HDB, expressed concern over the employment forecast, emphasising the anticipated reduction of 10,000 employees. He stressed the imperative for action, stating, there can only be one solution: build, build and build.
Despite the overall downturn, the study highlights a silver lining in commercial construction, where sales are projected to increase by 1.5%. This growth is attributed to substantial orders from entities such as Deutsche Bahn, electricity network operators, and local transport authorities.
(Source ET)