MUNICH (dpa-AFX) - Sentiment in the German residential construction industry plummeted in April at its sharpest rate in approximately four years, according to a business survey. The business climate index fell from minus 19.3 to minus 28.4 points, as reported by the Munich-based Ifo Institute - the most significant decline since April 2022. However, overall business climate readings in 2023 and 2024 were even weaker, with values ranging between minus 40 and approximately minus 60 points.
The institute noted that business expectations for the future have darkened significantly, while assessments of current operations have also deteriorated. 'Geopolitical uncertainty is now also weighing on residential construction in Germany,' said Klaus Wohlrabe, head of Ifo surveys.
Concerns regarding supply bottlenecks are reportedly increasing noticeably. In April, 9.2 percent of surveyed companies reported constraints in material supplies - particularly regarding raw materials. Previously, this figure had remained at only around one percent for over two years.
Meanwhile, current business operations remained largely stable. The proportion of firms complaining about a lack of orders showed little change, standing at 43.8 percent. The cancellation rate also remained virtually unchanged at 10.8 percent./mjm/DP/stk
