New construction orders fell in July

In July, companies in the construction sector received fewer orders.

In July, new orders in the construction industry fell by 9.2 percent compared to the previous month after calendar and season adjustment, as the Federal Statistical Office in Wiesbaden announced. In May and June there was a more stable starting position.

The general manager of the Central Association of the German Construction Industry (ZDB), Felix Pakleppa, said that the companies were still processing what was ordered months ago. “But the situation in the construction industry remains fragile.”

In July there were declines of 8.4 percent in building construction and declines of 10 percent in civil engineering. Structural engineering mainly includes the construction of apartments, while civil engineering includes road and bridge construction.

ZDB managing director Pakleppa sees a solution in promoting housing construction

Housing construction also stagnated in July. ZDB managing director Pakleppa therefore called for reforms. Housing subsidies are the cheapest way to stimulate the economy, he said. "Anyone who promotes home ownership relieves strained rental markets, strengthens the local economy and shows citizens that they take their concerns seriously." The industry is hoping for the federal government's special fund for infrastructure and climate neutrality. So far, however, the funds have hardly arrived, as Pakleppa said.

Despite the decline in orders, the construction industry actually had 4.6 percent higher sales in July compared to the previous month. This increased sales to 12.1 billion euros. The number of employees also increased by 1.5 percent compared to the previous year.