Construction (Germany):
Capacity utilisation again improved

The business situation in construction did not change in April. In civil engineering it improved slightly but worsened somewhat again in structural engineering. Lively construction activity led to a higher equipment utilisation rate, which at 69% was clearly above both the March level and that of the corresponding previous year (both at 64%). Also the order backlogs (2.5 production months) expanded, although they were somewhat larger than 12 months ago (2.6 months). Correspondingly, the dissatisfaction with the order reserves weakened. Contractors expect a further improvement of the business situation in civil engineering but are less confident regarding structural engineering than they were in March. According to the responses, construction prices will increase in the coming months. Personnel levels should remain unchanged, by and large, although the share of builders that plan a staff reduction (on balance, 10%), has increased somewhat. Also in eastern Germany the improvement of the present business situation in civil engineering was offset by a worsening in structural engineering. With increased construction activity, equipment utilisation rose to an average rate of 71% (previous year: 66%). Order backlogs also increased (to 2.1 months) and, as in the west, were not as frequently assessed as inadequate.