According to a recent survey by the Ifo-Institut, a record high of 57% of companies in the construction industry reported a lack of orders in January, surpassing the 53.6% recorded in December. This marks the highest level ever recorded. Klaus Wohlrabe, the head of Ifo’s surveys, commented that the crisis in the construction industry has seemingly become the new normal and even the European Central Bank’s (ECB) interest rate cuts have not led to a relaxation of the situation so far.
The business climate in the construction industry has taken a hit once again, largely due to significantly worse expectations. “The pessimistic outlook shows that companies currently do not believe in a rapid improvement” Wohlrabe added. The current situation was assessed as being at a very low level, but with a slight positive shift. The proportion of cancelled orders has decreased minimally to 9.7%.