Press

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 order shortage in Germany has worsened and is an obstacle to the economy. In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January. In the service sector, the proportion rose from 32.1% to 32.4%. “The lack of orders is hampering economic development in Germany,” says Klaus Wohlrabe, Head of Surveys at ifo. “Almost all industries are affected.”

In Bavaria, Covid-19 bridging aid was received mainly by the many smaller companies with fewer than 50 employees and in those industries particularly affected by the pandemic. This is the finding of the ifo Institute’s initial evaluation of this aid as part of a study commissioned by the Chamber of Commerce and Industry (IHK) for Munich and Upper Bavaria. The study assessed seven funding programs with payouts totaling EUR 11.2 billion resulting from more than 300,000 applications. Most of the money went to eateries and hotels, which were among the most affected by pandemic-related closures. These businesses received 40 percent of the total funding, or EUR 4.7 billion. Next came retailers with EUR 1.6 billion and the arts and culture industry with a total of EUR 1.3 billion.