Order Shortage Increase in Residential Construction in Germany
The order shortage in residential construction in Germany has risen again, as reported by 51.3% in July, up from 50.2% in June. “Anything that isn’t commissioned today cannot be built tomorrow,” says Klaus Wohlrabe, Head of Surveys at ifo. “That is also reflected in the forecasts for the number of newly built residential buildings. These are well below the German government’s target of building 400,000 units a year.”
The cancellation rate for orders fell slightly from 13.7% in June to 12.4%, and the situation seems to be easing somewhat. However, the business climate in residential construction has deteriorated overall. Assessments of the current situation and expectations are heavily in the minus, with no sign of a recovery at this time. “It remains to be seen whether the planned reduction in bureaucracy for residential construction within the German government’s growth initiative can bring about a turnaround,” adds Wohlrabe.
Publication
ifo Konjunkturperspektiven is a monthly German-language online publication that presents the latest results from ifo’s business surveys in the form of graphics and tables.
