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.