Construction (Germany):
Stronger pressure on prices expected

In construction the business climate worsened somewhat. The business situation was assessed as hardly changed; in the entire course of this year the business situation in construction has remained nearly stable. The firms are utilising their equipment capacities to a similar extent as in the previous year; dissatisfaction with order stocks decreased slightly in comparison to October 2007. The expectations concerning future building activity were not as negative in October as in September; on the whole production expectations have been trending downwards since the beginning of the year. Fewer firms are planning increases in prices.