Construction: Prices for Civil Engineering Services Edge Downwards

The business climate in construction deteriorated mildly for the fifth month in succession, according to the results of the Ifo Business Survey in February. Although assessments of the current business situation were marginally more favourable; the contractors surveyed expect business to cloud over slightly in the short-term. Machinery capacity utilization levels were reported as 75.1%, and were slightly lower than the same period last year (76.0%). Two thirds of the contractors surveyed reported constraints on construction activity. Around half cited so-called weather effects as the main cause (February 2014: 40%); while a quarter of survey participants reported a lack of orders, just as during the same period last year. Across all construction segments the average order backlog was 2.7 months (February 2014: 2.9 months). According to company reports, price increases were only implemented sporadically. However, survey participants expect to be able to implement clear price hikes over the next three months. The contractors surveyed expect a weaker increase in their staff base in the months ahead.