German Construction Sector Sees Surge in November Orders

In November 2024, Germany's construction industry experienced a substantial increase in orders, marking a 7.9% rise compared to the previous month. This surge was observed across both building construction, which grew by 7.8%, and civil engineering, which increased by 7.9%. Compared to the same month in the previous year, order intake soared by 16.6%, making November the most lucrative month of the year, with revenues reaching 11.5 billion euros. Despite this growth, total revenues still lagged behind those of the previous year.

Over the first eleven months of 2024, inflation-adjusted revenues in the construction sector declined by 1.1% from the previous year. Residential construction saw a downturn of 5.0%, while civil engineering revenues increased by 3.8%. The data considers companies with 20 or more employees, revealing a slight 0.3% decrease in the workforce compared to November 2023.

This positive trend in order intake provides a glimmer of hope for the construction industry, which has been struggling due to economic stagnation and rising costs. Lower interest rates are expected to stimulate demand by making real estate loans more affordable. However, the overall economic impact remains tempered as the construction sector has yet to deliver significant growth impulses. The Bundesbank highlights a lack of momentum in the sector, while industry representatives urge the new government to take action to support the market further.