Many Projects in Housing Construction in Germany Are Being Canceled
Many German housing projects are being canceled, finds an ifo Institute survey. The share of construction companies affected fell to 13.6 percent in January, down from 15.9 percent in December. “Although cancellations are declining somewhat, the level is still exceptionally high,” says ifo researcher Felix Leiss. “Companies see dark clouds on the horizon: business is still supported by high order backlogs, but there is anxiety with regard to future developments in residential construction.”
Business expectations dropped by a further 1.5 points to a record minus 63.1 points – their lowest level since the survey began in 1991. “Expectations have hit rock bottom, and companies are anticipating a significant slowdown,” Leiss continues. Meanwhile, despite the weakness of new business, companies are factoring in further price increases: price plans fell only slightly, from 37.4 points to a still very high 34.6 points.
