Construction in Germany has faltered in October, with nearly half of construction companies reporting no new jobs, according to a survey by the ifo Institute released on Monday.
As many as 48.7 percent of companies stated that they did not receive new construction orders in October, according to the monthly survey, which is 2.1 percentage points higher than in September.
– The situation is getting worse, more and more projects are failing due to rising interest rates and high construction costs. New jobs in residential construction remain at a very low level, and companies’ order books are slowly emptying – said Klaus Wohlrabe, head of the ifo survey.
Signs of stagnation are worsening month by month, Wohlrabe noted, adding that one in ten construction companies has fallen into financial difficulties and there are no indications that the business climate could improve soon.
– The outlook for residential construction remains bleak, companies are preparing for tough times, Wohlrabe said.
The share of companies with canceled jobs reached 22.2 percent in October, a new high since the ifo began publishing reports, and is 0.8 percentage points higher than in September.
Expectations among companies in the sector have dropped to an “extremely low” level, reflected in an index value of minus 63.9 points, according to ifo.
