Construction Sector Faced Modest Uptick in April Orders, Yet Stagnation Prevalent
Decline in construction orders recorded in April's statistics - Construction sector's inflow of new projects declined once more during the month of April.
The order intake in the construction industry showed a 34.3% surge in March, while there was a minuscule 0.5% increase in building construction. Despite the rise, Tim-Oliver Müller, CEO of the Construction Industry Association, remains skeptical about a sustained boom in construction. The federal budget, announced on Tuesday, may bring about more investment dynamics, he hopes.
Felix Pakleppa, CEO of the Central Association of the German Construction Industry (ZDB), highlights the 16% year-over-year growth in residential construction in the first quarter. However, with the developments in April, a stagnation at a low level is now observed.
The industry's total turnover increased by 0.9% compared to the previous year, reaching €9.4 billion in April. After accounting for price adjustments, the decrease stands at 1.4%. Over the first four months of the year, turnover increased by 2.4% compared to the same period in 2024.
Historically, the order intake in the German construction sector has experienced inconsistent growth, with spikes up to early 2025. In the November 2023 to November 2024 period, the industry registered a 17% year-on-year increase in incoming orders, only to see a 4% decrease compared to the previous year in March 2025. In recent short-term comparisons within early 2025, however, slight growth or stabilization in order activity is observed.
- Order intake
- Construction industry
- Residential construction
- Tim-Oliver Müller
- Wiesbaden
- Felix Pakleppa
- ZDB
- ** Construction trade**
- Industry turnover
- Fluctuations
- German manufacturing sector
[1] German construction industry order intake saw significant growth up to late 2024, followed by a decline in early 2025 compared to the previous year. (Source: Enrichment Data)[2] In April 2025, the real stock of orders in the German manufacturing sector experienced 0.8% growth compared to March 2025. (Source: Enrichment Data)[3] In the first quarter of 2025, order intake saw a 0.5% increase compared to the preceding three-month period. (Source: Enrichment Data)[5] Factory orders in Germany grew strongly by 3.6% month-over-month in March 2025, showing some momentum in order intake, despite a slight decline of 2.3% in the three-month comparison from Q1 2025 compared to the previous quarter. (Source: Enrichment Data)
- The surge in the order intake in the construction industry, as seen in March, might indicate a potential change in the employment policy, as more construction projects could lead to increased employment opportunities.
- Despite the growth in the construction sector's turnover, the stagnation in April and historical fluctuations pose challenges in formulating a concrete employment policy, given the industry's unpredictable nature.
