Construction industry weakens in Germany
ECONOMY & POLICY

Construction industry weakens in Germany

A recent study by the German Construction Industry Federation (HDB) has revealed a bleaker outlook for Germany's construction sector. Contrary to earlier projections, the industry is anticipated to contract by 4% this year, slightly worse than the previously estimated 3.5%. This downturn is predicted to result in approximately 10,000 job losses.

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)

A recent study by the German Construction Industry Federation (HDB) has revealed a bleaker outlook for Germany's construction sector. Contrary to earlier projections, the industry is anticipated to contract by 4% this year, slightly worse than the previously estimated 3.5%. This downturn is predicted to result in approximately 10,000 job losses. 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)

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code