Construction: Current Business Situation Clouds Over

The Ifo Business Climate Indicator fell slightly for the sixth consecutive month in February, according to the results of the Ifo Business Survey. The current business situation clouded over compared to February, while the six-month business outlook was also assessed less favourably. The order backlog remained at an average of 2.7 months, versus the marginally higher figure of 2.8 months during the same period last year. Machinery capacity utilisation rose by 0.3 percentage points to 75.4%, which was significantly lower than the figure for the same period last year (79.0%). 62% of the contractors surveyed cited production constraints. While 45% (March 2014: 16%) cited negative weather conditions as the main cause, 29% - or the same figure as last year -complained of a lack of orders. According to the survey results, price increases were implemented at a similarly sporadic level as last month. However, the scope for price increases is expected to grow in the months ahead. Contractors still plan to increase their staff base in the next three to four months.