The sentiment of companies in the housing construction sector has slightly improved in April, according to the Ifo Business Climate Index for the industry. The index increased from minus 43 to minus 37.7 points, as reported by the Institute on Thursday. Both the current situation and the expectations of companies have seen an improvement. “The mood in the housing construction is brightening up – albeit at a low level” said Klaus Wohlrabe, head of Ifo surveys. “Whether the planned infrastructure package by the government is already having an effect is still uncertain. At the moment, companies are probably more optimistic about a general upswing in the construction industry.”
Despite the improved sentiment, the order situation remains challenging: 51% of companies report a lack of orders, down from 54% in March. Additionally, cancellations have increased: 10% of firms in April report canceled orders, up from 8% in the previous month. The number of official building permits has also declined recently.