Business · Economy · 15 hrs ago

German construction orders hit a record, driven by major projects

German construction orders hit a record, driven by major projects

Germany’s construction industry received a record number of new orders in August, with orders up 23% from July.

The increase was driven mainly by several large projects, according to the Federal Statistical Office.

Orders for infrastructure work such as roads and railways rose 31.6%, while orders for buildings rose 12.4%.

The figures are a boost for the industry, but do not show a broad recovery, as smaller firms fear they will miss out on large public contracts.

Construction turnover rose 10.1% from a year earlier to €10.9 billion, and employment increased to about 548,000.

The housing market remains strained: rents are rising while home purchase prices are flat or may fall, as higher interest rates curb demand for homes to buy.

Industry groups are calling for more support for housing construction, while large projects may take time to translate into sustained revenue for builders.

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What people are saying

Tim-Oliver MüllerChief executive of the construction industry association
We finally see light on the horizon.
via Tagesschau
It will certainly take some time for major projects in particular to feed through into the industry and, in turn, into sustainable revenue.
via n-tv
Felix PakleppaChief executive of the Central Association of the German Construction Industry
The sharp rise in orders is mainly due to civil engineering, with a few major contracts in individual federal states, particularly in Bavaria.
via n-tv