Economic situation or cycle - IFO: Housing construction orders slightly decreased
The order situation in the German Housing Construction sector eased slightly in June. Fewer companies reported order backlogs or cancellations in a survey by the Munich Ifo Institute. Specifically, the proportion of cancelled orders dropped from 15.1 to 13.7 percent. Companies reported a shortage of new orders in 50.2 percent of cases, which was 1.5 percentage points less than in May. Both figures have been declining since a brief increase at the beginning of the year but remain unusually high.
"The shortage of new orders remains a major issue," says Ifo expert Klaus Wohlrabe. "Financing costs have not improved much yet. This is also reflected in the development of building permits." Wohlrabe does not expect a quick easing: "What is not ordered and approved today cannot be built right away." Given the current figures, it is not surprising that the business climate in housing construction, despite a slight improvement, remains deeply negative with a score of minus 44.3 points. "The industry is still far from optimism," according to Wohlrabe.
- Despite the slight improvement, Klaus Wohlrabe, an expert from the Munich Ifo Institute, mentions that the German Housing Construction sector is still facing a deep negative business climate in Munich.
- The current order situation in the Housing Construction sector in Germany, as reported by Wohlrabe, indicates a persistent shortage of new orders, which is affecting housing construction in various cities like Munich.
- The housing construction industry in Germany, including major cities like Munich, continues to grapple with high financing costs, as noted by Wohlrabe, which is affecting the overall economy.
- Wohlrabe, the expert from the Munich Ifo Institute, forecasts that the easing of the order situation in the Housing Construction sector in Germany may not happen quickly due to the need for approved building permits and ordered projects to proceed with construction, which directly impacts housing construction in cities like Munich.
