Construction (Germany):
Stabilised business climate

The business situation in construction was classified as "good" in both October and September, with a slight improvement in building construction setting off a weakening in civil engineering. Equipment utilisation at 71% was 8 percentage points higher than at the same time of the previous year. On average for all construction sectors, the range of order reserves decreased somewhat (to 2.5 months); correspondingly the enterprises were again somewhat more dissatisfied with their current order situation. With regard to the business outlook, the cautious appraisal continued, both in structural and also in civil engineering. Building prices were raised in October, and according to the firms' responses this will also be the case in the coming months. On balance, one seventh of the survey participants intended to reduce staff numbers. In contrast, in eastern Germany the judgments of the current business situation were more unfavourable than in September. The capacity utilisation rate declined from 76% to 74%, and order stocks again remained unchanged (2.1 months). In the business expectations, scepticism continued to be expressed. In the coming months firms expect to achieve a modest increase in prices.