Construction: More favourable outlook

The survey indicates that the business climate in construction improved in March. The surveyed firms assessed their current business situation and their business outlook more favourably than in February. Construction volume as well as the equipment utilisation rate rose. At 67% (seasonally and weather adjusted) equipment utilisation was just as high as a year ago. Four out of five contractors complained about production constraints. Three times as many surveyed firms as in last year (63% vs. 21%) reported constraints because of unfavourable weather conditions. Fewer firms than last year (39% vs. 44%) complained about the lack of orders. Order stocks remained at 2.5 months (seasonally and weather adjusted); one year ago the reserves were at the same level. About one third of the contractors are still dissatisfied with their order stocks. Some prices had to be reduced in March, but in the coming months price hikes and price reductions should balance out. Personnel levels should be reduced somewhat.