Downward trend in East German construction industry continues
The construction industry in eastern Germany is continuing its downward trend. The total order volume of the main construction industry fell by 4.1 percent to 14.6 billion euros in the first nine months compared to the same period of the previous year, as announced by the Construction Industry Association East in Potsdam on Friday. A trend reversal is not in sight, said Managing Director Robert Momberg.
The biggest drop was in residential construction. Here, the volume of orders fell by 29.2 percent to just under 2.2 billion euros. In public construction, incoming orders amounted to 5.5 billion euros, falling short of the previous year's result by 2.7 percent.
Prices also had a negative impact on the sector. "Taking into account the significant year-on-year increase in construction prices, the value of orders in the main construction sector in eastern Germany as of September 2023 was down 16% in real terms compared to 2022," emphasized Momberg.
The association represents the interests of 260 construction companies with around 20,000 employees in Berlin, Brandenburg, Saxony and Saxony-Anhalt.
Despite the struggling economic situation in eastern Germany, some individuals are still building their homes, albeit facing higher construction prices. The continued downward trend in the construction industry has led to a decrease in the number of living spaces being constructed.
Source: www.dpa.com
