Financial climate - In spite of a decline in construction sales, no layoffs are expected.
There's been a considerable drop in revenue for Thuringia's construction industry during the first quarter. This is according to the Statistical Office, with earnings in the primary sector decreasing by 10% to hit 386.2 million euros. Keep in mind, this figure doesn't consider any potential price hikes that could have boosted sales, as pointed out by statisticians. In spite of this decline, the employment landscape remained stable, with approximately 14,200 employees on board.
During the months of January to March, there was a promising growth in orders received by companies. With a grand total of 540.2 million euros in orders, the industry saw a 2.2% surge compared to the same timeframe in the previous year. Most of these orders were associated with public construction projects and road construction, totaling 351.1 million euros. It's the increase of 83.2 million euros, which accounts for almost a third of the overall growth, that's most noteworthy in this area.
Yet, the residential construction and commercial construction sectors continue to face struggles. Investors are reluctant to invest given the higher interest rates and increasing construction costs.
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Despite the positive growth in orders, the main construction industry in Erfurt, Thuringia's capital, is still experiencing a slump in sales, aligning with the broader construction industry's decline. Consequently, some building trade companies have been forced to reduce their workforce due to job cuts, resulting from the drop in sales. Economic situation in Thuringia's construction industry has been challenging, leading to a tightening of the belt in the building trade. The situation is particularly troubling for the residential construction and commercial construction sectors, which continue to grapple with a reluctance of investors to invest due to higher interest rates and increasing construction costs.
