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German Construction Orders Plummet in February, Infrastructure Hit Hard

February data reveals a 7.5% drop in overall orders and a 14.8% slump in infrastructure projects, while residential construction and revenues show resilience.

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Overview

  • German construction orders fell by 7.5% in February 2025 compared to January, marking a significant downturn for the sector.
  • Infrastructure construction (Tiefbau) saw a steep 14.8% decline in orders, attributed to a federal budget freeze halting new public projects since late 2024.
  • Residential construction orders rose by 20% year-to-date, and Hochbau orders increased by 1.1% in February, highlighting divergence within the sector.
  • Construction companies reported a 4.0% nominal revenue increase in February compared to the previous year, with a real growth of 1.8%.
  • Business sentiment in the construction sector reached its highest level in nearly two years in April, buoyed by expectations of future government infrastructure investments.