Construction: Business Situation Improves

According to the results of the Ifo Business Survey, there was little change to the business climate in construction in October. Although the contractors surveyed were slightly more satisfied with their current business situation that last month, their assessments of the six-month business outlook were less favourable. Machinery capacity utilisation dropped marginally to 73.6% (seasonally and weather-adjusted) and was only fractionally higher than the level seen for the same period last year. 27% of survey participants reported constraints on construction activity. 16% of contractors complained of a lack of orders and 6% reported a staff shortfall (October 2013: 11% and 9% respectively). The average order level in Germany across the various construction segments remained constant at 2.9 months (seasonally and weather-adjusted) and thus reached the level of the same period a year previously. The test results reveal that price increases were implemented slightly more frequently than recently. In contractors’ opinion, there will also be greater scope for price increases in the months ahead. The companies surveyed plan to recruit more staff in the near future. The survey figures on developments in employment rose for the third month in succession.