Ifo Architects Survey: Order backlogs slowly improve from low levels

According to the latest results of the Ifo Institute's survey of freelance architects, the business climate at the beginning of the 3rd quarter 2004 changed little over the previous quarter. The surveyed architects were just as dissatisfied with their business situation as in the preceding quarter. Although 12% of the freelance architects characterised their present order situation as "good", on average, the share of those giving "poor" appraisals increased from 55% to 57%. The architects assessed their business outlook with more reserve than a quarter ago. Whereas the share of survey participants that expect a "worse" order situation in the course of the next half year remained constant (29%), only 9% expect a more positive development (previous quarter: 11%). The decline in estimated construction volume is solely attributable to recurring declines in incoming orders in house construction, whereas in non-residential construction there was a slight expansion.