The order situation in construction did not improve sustainably in May either. Compared to April of the current year, the main construction trades recorded a real increase in orders of 3.5 percent, as the Federal Statistical Office announced on Tuesday. Compared to the same month last year, however, orders were down: both adjusted for price increases (minus 5.7 percent) and nominally (minus 2.1 percent).
High construction prices and higher interest rates have been weighing on demand for months. In the first five months of 2023, according to the Wiesbaden statisticians, incoming orders in the main construction trades fell by 14.7 percent in real terms and by 3.7 percent in nominal terms compared to the same period of the previous year.
Nevertheless, the industry is registering rising sales due to the sometimes sharp increase in construction prices: In May, nominal sales of 9.5 billion euros were 3.8 percent above the level of the same month last year. Adjusted for price increases, sales in the first five months were 7.3 percent lower than in the same period of the previous year, but nominally 4.8 percent higher. The main construction trade includes the construction of buildings (structural engineering) as well as roads, railway lines and lines (civil engineering).
