German Construction Orders Latest

Data from the Statistisches Bundesamt Deutschland (SBD), the Government's statistical bureau, show that construction orders in Germany increased +18.1% in June, compared to May. However, they were -1,4% lower than in June 2004.

Incoming orders hit a low in January and February, with the unusually harsh winter seeing levels of -14,2% and -23,4% respectively, lower than the same months in 2004.

There was a sharp improvement in the spring, and by the end of May, order levels had recovered to +2,4% higher than at the same point a year previously. While orders improved from May to June, the final level half way through the year was -1,4% below that of 2004.

Residential construction is suffering the most from the current slump. Order levels throughout the first six months of the year have been below 2004 levels. The SBD measures this by an index system, where 2000 = 100, and at the end of June the figure for residential orders was just 68,1.

The picture is better in the road sector, but it is still not positive. The order level at the end of June was -1,8% lower than 12 months ago, despite some good month-on month gains.

Long Term

The longer term trend is not a positive one. Overall order levels for each quarter-year since 2000 have been consistently lower than the same quarter in the previous year since mid-2001.

The roads sector has had some improvements, but has slipped since the middle of 2004. At the end of the first quarter of this year the index of new orders stood at 94,6. Worse though is the residential sector, which has shown consistent declines for the last four years.

The Index for residential orders reached a low of 50,9 points in the last quarter of 2004. There was some improvement to 59,3 points in the first quarter of this year, but at 59,3 points, this still represented a -5,9% decline compared to a year previously.