Construction economy in a decline: apartment shortages further exacerbates

Construction economy in a decline: apartment shortages further exacerbates

The alarm bells ring in the construction industry! Despite a slight upswing in July 2024, the situation in August remains dark. "No ray of hope on the horizon," said the general manager of the construction industry, Tim-Oliver Müller. A decline in real order intake of 5.3 percent, after an exceptional increase of 17.3 percent in August 2023, the industry shivered. August brings the naked truth to light!

It's like a shadow that hovers over the construction. Statistics of the Federal Statistical Office show a minimal decline in order incoming by 0.6 percent for the first eight months. The weak development in housing is particularly alarming, which has fallen 2.9 percent compared to the same month of last year. Müller's warning words: "The cementing of the housing shortage is thus laid down". Has the dream of your own home moved far away?

another blow for sales

The numbers speak a clear language. While there is an increase of 2.8 percent in the civil engineering inputs, the construction of a decline of 4.5 percent is plagued. This has a dramatic effect on sales: a real minus of 0.8 percent for August and a total minus of 1.1 percent for the year. And housing construction becomes a big loser - with a loss of sales of Real 12.7 percent in August and over 12 percent for the first eight months. Where's the turn?

• reporting period: August 2024
• Agency of the order incoming: 5.3 percent
• sales of sales: 0.8 percent in August
• Special feature: civil engineering shows slight increase in 2.8 percent
• housing construction: alarming minus of 12.7 percent in August

The effects are unmistakable! It becomes really dramatic when you consider that the number of employees in the industry has dropped by 0.4 percent in the first eight months. Müller confirms: "We urgently need a trend reversal when demanding and production". Because if the decline continues, valuable specialists threaten to be lost. The industry is on the brink!

The numbers and reports come from reliable sources such as the Federal Statistical Office, the IFO Institute and the DIHK. The location is tense and we have to ask ourselves: How long can the main building industry withstand this pressure?