Construction (east):
Cautious price increases

The current business situation in eastern Germany also improved slightly. This was due to an upward trend in building construction, although the current situation was still judged considerably more negatively than in civil engineering. At 70%, equipment was utilised at a slightly lower level in the previous month, the corresponding value of the previous year was surpassed, however (68%). In contrast the range of order reserves expanded to 2.2 production months. With regard to future business development, the firms were again somewhat more sceptical. The responses indicate that employment in German construction will continue to decline, particularly in western Germany. The survey participants in both panels expect to be able to raise prices somewhat in the coming months.