Construction (Germany):
Hardly any scope for price increases

In construction the survey participants were as dissatisfied with their current business situation as they were in the September. This was the case for both civil and structural engineering; only in road construction was a slight upturn reported. With reduced construction activity, the equipment utilisation rate fell by one percentage point to 69% (previous year: 71%). The depth of order stocks (2.5 months) has remained unchanged since mid-year; approximately 40% of the contractors are still not satisfied with their order positions. The scepticism with regard to the six-month outlook persists, weakening in structural engineering but increasing in civil engineering. According to the responses, slightly increasing construction costs can be expected in the coming months. Only a small portion of firms anticipates employing additional staff. Contractors in eastern Germany again classified their current business situation a little less unfavourably although their order situation has deteriorated again. Construction activity has decreased, and the equipment utilisation rate also decreased correspondingly (73%). Prices are expected to weaken in the months ahead; an increase in the number of employees is not planned.