Ifo Investment Survey in construction: clearly reduced investment budget in east and west Germany

The survey of building contractors conducted by the Ifo Institute last year included realised investment in construction in self-used equipment and buildings in 1999, preliminary numbers for investment activity in 2000, and estimates of the contractors on their investment in 2001, and in addition information on the structure and objectives of their investment. For the construction industry, 2000 was a year of disappointed hopes. Output in German construction fell by 2½%; in the east it was ½% below the values of 1999 and in the east 8%, in real terms. This year as well, a satisfactory business situation is not evident. For 2001, a decline to total construction volume of 2¼% is prognosticated. However, the initial assessments for 2002 give grounds for cautious optimism.