Glimmer of hope: construction orders and sales increase in February

Glimmer of hope: construction orders and sales increase in February

The construction industry in Germany recorded positive developments in February. Both incoming orders and sales in the construction industry increased compared to the previous year. Price-adjusted incoming orders increased by 1.8 percent compared to the previous month of January. Building construction showed an increase of 0.5 percent, while civil engineering even recorded an increase of 2.9 percent. Despite these positive figures, the industry is not yet out of the woods and is not talking about a definitive turnaround.

In a comparison to the same period last year, the construction industry recorded a real increase in orders of 0.9 percent in February 2023. In the first two months of the current year the increase was 1.1 percent. Including price increases, the increase in incoming orders was 4.1 percent compared to the previous year. The year before, the industry had to contend with builders' reluctance to invest due to rising interest rates and costs.

Despite these positive developments, experts such as Felix Pakleppa from the Central Association of the German Construction Industry and Tim-Oliver Müller from the Main Association of the German Construction Industry do not see a final all-clear. It was found that building permits continued to decline in February, which is a prerequisite for new orders. However, sales in the construction industry in February exceeded the level of the same month last year in both real and nominal terms. Adjusted for prices, revenues rose by 2.0 percent, while nominal sales rose by 2.6 percent to 6.8 billion euros.