Construction: Business Climate Cools Down Further

According to the results of the Ifo Business Survey, the business climate in construction cooled down for the sixth time in succession. Although survey participants assessed their current business situation slightly more favourably than last month, they were somewhat more cautious about their six month business outlook. Machinery capacity utilisation was at a similar level as in August; while the degree of utilisation (seasonally and weather-adjusted) was one percentage point above last year's level at 74%. The average range of orders remained at 3.0 months (seasonally and weather-adjusted) and thus only narrowly exceeded last year's value. A quarter of survey participants complained of construction constraints. Overall, one in ten firms faced a shortage of incoming orders, and almost as many reported manpower deficits. According to company reports, price increases were implemented as often as last month. Companies also reckon with greater scope for price increases in the months ahead and plan to expand their staff base to a greater extent.