Above the level of the same month last year
Germany’s construction industry is receiving more orders
September 25, 2023, 9:39 a.m
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Interest rates are high, building materials are expensive and Germans are building less. But there are positive growth rates in July. Incoming orders are nominally 7.6 percent above the level of the same month last year. However, there is a fly in the ointment.
A ray of hope for the construction industry in Germany, which is plagued by a lack of orders: In July of the current year, the construction industry recorded more real orders compared to the previous month (plus 9.6 percent) and the same month last year (plus 1.5 percent). This was the first time since March 2022 that both values were in the black again Federal Statistical Office announced. In nominal terms, price increases have been ensuring positive growth rates for a long time: in nominal terms, incoming orders in July 2023 were 7.6 percent above the level of the same month of the previous year, according to the Wiesbaden authority. The main construction industry includes the construction of buildings (building construction) as well as roads, railway lines and lines (civil engineering).
However, if you look at the year to date overall, there has been a decline in new orders so far. In the first seven months of 2023, adjusted for price increases, 10.7 percent (real) and 0.8 percent fewer orders were received in nominal terms than in the same period last year. High construction prices and increased interest rates have been weighing on demand for months.
Nevertheless, the industry is recording increasing sales due to the sometimes sharp increase in construction prices: In July, nominal sales of 10.3 billion euros were 6.3 percent above the level of the same month of the previous year. In the first seven months, revenues were 4.5 percent lower compared to the same period last year, adjusted for price increases, but 5.7 percent higher in nominal terms.