Construction (Germany):
Hopes in stimulus package

The business climate in construction has shown little change since the beginning of the year. The surveyed firms evaluated their current business situation more unfavourably than in December, but their expectations regarding business in the next six months are less negative than a month ago. A decline in construction activity in the coming months is feared by fewer firms. Their equipment was utilised to a lesser extent than in December, however. Nevertheless, the utilisation rate is above the value of January 2008. Dissatisfaction with the order stocks has shown little increase. In civil engineering, in particular, the development of new orders has not been as unfavourable as before. Firms in this sector are thus less dissatisfied with their order stocks and plan far less frequently to restrict construction activity. On the whole, the business climate in civil engineering has improved perceptibly. Possibly the economic stimulus plans have played a role here. In structural engineering, however, the business climate has deteriorated. Whereas the firms in public-sector building are less sceptical regarding their order stocks as in December, firms in commercial construction are clearly more dissatisfied.