Construction (west):
Order reserves still unsatisfactory

The business climate in the east and west German construction industry remains unfavourable. Throughout the German construction industry, a somewhat less negative assessment of the current business situation was offset by a more sceptical appraisal of the business outlook, especially in east German building construction. Equipment capacity increased slightly (west Germany: 61%; east Germany: 65%). Only the west German contractors reported an increase in order reserves. In west Germany prices are expected to increase in the coming months, but in east Germany they should continue to fall. According to the survey responses, personnel reductions in construction throughout Germany will continue.