Ifo: Wave of cancellations in residential construction continues


housing

According to Ifo, the reason for this is the sharp increase in construction costs with high material and energy prices.


(Photo: dpa)

Munich The housing companies in Germany have with oner ongoing wave of cancellations to contend with. In August, according to a survey by the Munich Ifo Institute published on Monday, more than every tenth company (11.6 percent) that builders had withdrawn orders.

Already in July there was a very similar picture. According to Ifo, the reason is the sharp increase in construction costs with high material and energy prices, higher interest rates and reduced government subsidies.

Accordingly, pessimism has spread in the housing construction industry, with many companies fearing worse business. "Companies still have bulging order books, but with a view to future developments, fear is spreading," said Ifo housing specialist Felix Leiss.

The Ifo index of business expectations in residential construction fell to minus 48.3 percent. According to the Ifo, this is the lowest level since the monthly surveys began in 1991.

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