Overview
- Ifo’s business climate index for residential construction decreased to -23.0 in October from -22.0, eroding part of the late-summer improvement.
- Surveyed companies were less satisfied with current business and more pessimistic about the outlook, with Ifo’s Klaus Wohlrabe saying the recovery will take time.
- The share of firms reporting too few orders eased to 44.4%, the lowest in about two years, while cancellations edged down to 8.0% but remained high.
- Ifo pointed to a considerable backlog of building permits that is holding back project starts and limiting new orders.
- Housing minister Verena Hubertz warned completions will likely fall again this year, as the government rolls out €23.5 billion for social housing plus about €11 billion from a special fund and measures such as the new “Gebäudetyp E” and digitalization.