Construction: Business Climate in Mechanical Engineering Clouds Over

The business climate indicator in construction edged downwards slightly in June, but remained at a high level. The contractors surveyed assessed their current business situation slightly more cautiously than in May. Their six-month business outlook also clouded over marginally. Although machinery capacity utilisation fell to 77.9%, it remained clearly above the previous year's value of 75.5%. In line with the same period a year previously, 26% of the contractors surveyed reported constraints on their construction output. The most frequently cited constraint was a lack of skilled workers (11%); followed by a lack of orders (9%). As far as the order back log is concerned, it remained at the record high of 3.8 months reached in May. During the same period last year the backlog was half a month lower. According to firms, price increases were implemented more frequently and reached their highest level since April 1991. Firms also see scope for further price increases in many areas in the months ahead. More survey participants expected recruitment to rise in the short-term future in June. Contractors' employment outlook was more positive than ever in June.