The number of canceled residential construction projects in Germany is rising, with 22.2% of companies reporting cancellations in October, up from 21.4% in September.
The data comes from the Munich-based ifo Institute for Economic Research.
In October, 48.7% of companies reported a lack of orders, up from 46.6% in September and 18.7% a year ago.
Klaus Wohlrabe, head of surveys at ifo, says that the situation is getting worse, with higher interest rates and elevated construction prices causing more and more projects to fail. He added that new business in residential construction remains very low and companies’ order backlogs are diminishing.
‘Nearly half of all residential construction companies are now suffering from a lack of orders, and that number is growing every month. The situation is putting several companies under threat, with one in ten having already reported financial difficulties,’ added Wohlrabe.
The outlook for the residential construction industry remains bleak and expectations reached an exceptional low of -63.9 points in October.