The construction sector experiences an increase in orders.
In the first part of the year, the main construction sector is projected to witness a rise in orders potentially driven by lower prices. The turnover in this sector remains lower than the preceding year.
The construction industry in Germany wrapped up the initial quarter on a high note with a surge in orders, owing to increased demand in March. As per the Federal Statistical Office's data, the primary construction industry witnessed a 1.6% increase in orders when compared to the same period last year, adjusted for inflation. In terms of actual value, there was a 1.1% hike in new orders compared to the previous year.
In March, more orders were secured than in both February 2024 (3.8% increase) and March 2023 (2.2% increase). Conversely, unadjusted nominal new orders were lower than in the corresponding month last year (-3.4%). The contrasting trend of a drop in nominal incoming orders and a simultaneous rise in real incoming orders was attributed to a decrease in construction expenses during 2023 by the analysts.
The main construction industry involves the creation of buildings (building construction) and infrastructure projects like roads, train tracks, and pipes (civil engineering). The sector had previously registered more orders in February following a deficit in January.
In both real and nominal terms, the industry's revenue in March was lower than the same month in the previous year. The adjusted turnover amounted to 8.2% fewer funds, while the nominal turnover dropped by 7.5% to reach €8.4 billion. During the first three months of the year, the overall turnover plummeted by 4.1% after factoring out inflation and 3.3% in terms of actual value compared to the same duration in the year prior.
Read also:
- Lack of snow also opens up new opportunities for winter tourism
- Abrupt end to e-car subsidies
- The chemical industry has little confidence
- Intersport boss hopes for sales boom through sporting events
The construction industry's surge in orders can be attributed to the increase in building projects within the industry. Moving forward, experts expect the construction sector to continue this trend, contributing to a more robust economy.
Source: www.ntv.de
