German Construction Sector Faces Persistent Decline in Orders

New data reveals continued struggles in the construction industry, with notable drops in residential and commercial projects despite slight growth in public sector demand.

Construction companies in Germany reported a 12.4% real decline in orders in September 2024 compared to August, following a brief improvement in the summer.
Year-on-year comparisons show a real decrease of 11.5% in September 2024 and a 2.0% drop in orders over the first nine months of the year.
The residential and commercial construction sectors experienced significant contractions, with order volumes down by 6.7% and 7.4% respectively in eastern Germany from January to September.
Public sector construction was the only area to see growth, with a 10.1% increase in orders compared to the same period in 2023.
Economic uncertainty and high financing costs are cited by the Bundesbank as key factors suppressing investment and demand within the construction industry.