Construction (Germany):
Declining order stocks

The business situation in construction received the most unfavourable assessments since May of last year, and both structural and civil engineering were affected by this decline. In light of reduced construction activity, the equipment utilisation rate fell to 62% and was also lower than 12 months ago. Order backlogs also decreased; at a range of 2.3 months the value of the previous year was not matched (2.5 months). Correspondingly, more enterprises (43%) reported insufficient order reserves; this share has almost doubled within the past six months. In the business expectations, cautious optimism was expressed. According to the survey responses, construction prices should continue to rise in the coming months. But the personnel situation will worsen somewhat now that, on balance, 7% of the firms expects staff numbers to decline. Eastern German contractors also evaluated their present business situation more unfavourably and look more sceptically into the future than in January. The equipment utilisation rate (58%) and the range of order backlogs (1.8 months) decreased and were clearly under the levels of the previous year. After the interruption at the beginning of the year, prices should increase again in the coming months.