Analysis: Significant decline in the main construction industry - incoming orders decreased, sales increased

Analysis: Significant decline in the main construction industry - incoming orders decreased, sales increased

According to a report by www.zeit.de, new orders in the construction industry fell significantly in September after rising in the previous two months. The inflation-adjusted real minus compared to the previous month was 7.3 percent. Interestingly, orders in building construction increased by 7.9 percent, while in civil engineering they fell by 18.8 percent.

The development in September is partly due to the high level of orders received in civil engineering in August, which was due to several large orders. Compared to the same month last year, real incoming orders rose by a total of 13.2 percent, with building construction increasing by 12.6 percent and civil engineering increasing by 13.8 percent.

Real sales in the construction industry fell by 1.5 percent in September compared to the same month last year, although they rose nominally by 2.2 percent to 10.3 billion euros due to increased construction prices. In the first three quarters of the year, there was a real decline of 5.6 percent in incoming orders compared to the previous year, while companies' price-adjusted sales fell by 3.6 percent. Nevertheless, higher prices led to nominal sales growth of 4.9 percent.

This significant decline in incoming orders in civil engineering and the overall negative picture of the construction industry in terms of incoming orders and sales could have a major impact on the construction industry. Falling incoming orders could lead to a decline in construction activity and job losses. In addition, increased construction prices and declining sales could lead to financial challenges for companies in the construction industry. Developments in the construction industry are therefore an important indicator of the health of the entire economy and should continue to be monitored closely.