Construction (Germany):
Improved business climate

In construction the firms are hardly less dissatisfied with their current situation than the previous month. A slight improvement in structural engineering was offset by a worsening in civil engineering. Equipment utilisation decreased by around 3 percentage points to 66% and was also below the previous-year level (67%). The range of order backlogs has not changed since mid-year, amounting to 2.5 production months. The six-month outlook has brightened clearly, particularly in civil engineering. Also the willingness to increase staff numbers has increased. According to the responses, increased construction prices must be reckoned with in the coming months. Contractors in eastern Germany also still assessed their current business situation largely negatively and but look more optimistically than before at the business ahead. With restrained building activity, equipment was utilised at only a 65% rate (previous month: 71%). In the coming months the surveyed firms see more scope for increasing prices. The number of employees is likely to be increased somewhat.