Konjunktur: Baubranche legt im Juni kräftig zu: Beschäftigung wächst

The German construction industry saw a strong growth in June, with a 11.3% increase in order intake compared to the same month last year, according to the Federal Statistical Office. This was driven by large projects, with both the high-rise and underground sectors experiencing significant growth. April to June saw a continued rise in orders, reflecting in the employment figures which rose by 1.5% in June compared to last year, reaching about 545,000 people.

Felix Pakleppa, CEO of the Baugewerbeverband ZDB, noted that June was a good month for the construction industry, particularly praising the strong increase in road construction and public works. However, he cautioned against concluding a construction boom just yet. The construction sector benefits from the federal government's spending on roads and railways.

In contrast, the housing market is under pressure due to rising interest rates which have made home buying more expensive for both individuals and investors. There were signs of an upward trend in the housing sector as well, with building permits increasing by over 15% in the first half of the year, the strongest growth in this period since the first half of 2016.

The construction industrial association HDB raised hope from the strong increase in orders but lowered its revenue forecast for this year from 2.5% to 1% price adjusted, given the rising construction costs. Whether these June growths signify a trend change or are just a false hope remains to be seen, construction chief Tim-Oliver Müller said.

The association still expects employment in the construction sector to grow by one percent or 10,000 people this year to reach 933,000.