The Construction Boom – How to Interpret ifo's Survey Results

In the context of the ifo Business Survey, construction is remarkable thanks to its very low long-term average values. Are the current record figures for indicators to be interpreted absolutely or in relation to historical averages? A comparison with figures publicly released by the German Federal Statistics Office shows that long-term average figures are heavily influenced by a prolonged crisis in construction as of the mid-1990s. This makes it redundant to interpret current indicator figures against the background of their respective average figures.