Order Cancellations in German Residential Construction Reach a New High
Germany’s wave of cancellations in residential construction continues. In October, 22.2% of companies reported canceled projects, up from 21.4% in the previous month. “It’s getting worse all the time, with more and more projects failing due to higher interest rates and elevated construction prices,” says Klaus Wohlrabe, Head of Surveys at ifo. “In residential construction, new business remains very low and companies’ order backlogs are diminishing.”
In October, 48.7% of companies reported a lack of orders, up from 46.6% in September. A year ago, in October 2022, the proportion was 18.7%. “Nearly half of all residential construction companies are now suffering from a lack of orders, and that number is growing every month. The situation is putting several companies under threat, with one in ten having already reported financial difficulties,” Wohlrabe says. “The outlook for the residential construction industry remains bleak as companies brace themselves for hard times.”
Expectations reached an exceptional low of -63.9 points.
