Cancellations in German residential construction have increased. Just under one in five companies (19.6%) reported cancelled orders. In February, the figure was 17.7%. 'The situation in residential construction remains tense,' says Klaus Wohlrabe, Head of Surveys at ifo. 'There aren't enough new orders to offset the cancellations.'
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In March, 56.2% of companies reported a lack of orders, up from 56.1% in February. Although the business climate in residential construction rose slightly, it remains entrenched in negative territory. Expectations for the coming months are heavily pessimistic. 'Many companies are reducing their construction activity due to a lack of orders,' Wohlrabe says.
At present, cancellations are not as big a problem in civil engineering, where only 6.5% of companies reported this as a concern (previous month: 5.3%). However, around one in four companies reported a lack of orders.
More information:
ifo Institute
www.ifo.de