Sectors in Focus: Building Construction

Building construction companies have so far coped well with the coronavirus crisis. Extremely favorable weather at the start of the year and marked pull forward effects due to the temporary reduction in sales tax have further fueled construction activity in 2020. Against this backdrop, the setback in the first quarter of 2021 came as little surprise. Since April, however, the building construction companies surveyed by the ifo Institute have now been reporting extensive construction delays due to material shortages. This is accompanied by a sharp rise in price expectations for construction work to be carried out.