Construction: Business Outlook More Favourable

The business climate in construction improved for the third month in succession. Although the contractors surveyed assessed their current business situation as somewhat less favourable than in May, their six-month business outlook brightened this month. Machinery capacity utilisation remained at 71.9%, which is half a percentage point below the value for the same period last year. As in 2014, 27% of survey participants reported construction production constraints. While 19% of the firms surveyed complained of a shortage of contracts, other impediments played virtually no role. There was no change to the order back log in June, which has been at 2.8 months since March. According to firm reports, prices were increased more frequently than recently and there should be scope for further price hikes in the months ahead. Survey participants continue to expect a slight increase in staff numbers in the short-term.