MUNICH (dpa-AFX) – Due to the steadily increasing shortage of materials and incalculable cost increases, the business expectations of German construction companies have fallen to a low point. In the monthly company survey published on Thursday by the Munich ifo Institute, 54.2 percent of building construction companies complained about delivery bottlenecks. That was more than ever since the surveys began in 1991. In civil engineering, 46.2 of the companies reported a lack of material, also a new high.
Accordingly, according to ifo, business expectations in the construction industry have plummeted, in building construction the corresponding indicator of the institute fell to minus 46.9 points, the lowest level since 1991. In civil engineering it was even minus 48.6 points.
The construction companies also reported an increasing number of order cancellations. In April, 7.5 percent of building contractors and 9.3 percent of civil engineers reported canceled orders, significantly more than in March. “With ongoing projects, the question arises to what extent cost increases can be passed on,” says Ifo construction specialist Felix Leiss. “New projects are hardly calculable. On the other hand, the interest rates for the financing are rising for builders.”/cho/DP/stk
