Baubranche: Auftragseinbruch am Bau – „Die Lage bleibt fragil“

The German construction sector suffered a significant setback in July, as real (inflation-adjusted) orders fell by 9.2 percent compared to the previous month, according to the Federal Statistics Office. This marked the largest decline since October 2025 and followed two months of sharp increases. Felix Pakleppa, CEO of the Central Association of the German Building Industry, noted that "the order books are becoming thinner."

"The businesses are still operating, but jobs were placed months ago," he added. Pakleppa emphasized that "the construction sector's situation remains fragile." Both the high-rise and low-rise sectors experienced substantial drops in orders, with declines of 8.4 percent and 10 percent, respectively. However, on a three-month comparison basis from May to July, order intake was 2.7 percent higher than the previous three months.

Unfortunately, the residential sector did not see improvement; orders fell sharply again in July after a strong gain in the previous month. Construction industry associations are therefore calling for political reforms. Pakleppa stated that "housing promotion is the most favorable way for the federal government to stimulate the economy."

"Promoting homeownership relieves strained rental markets, strengthens the domestic economy, and shows citizens that their concerns are being taken seriously." Despite the dampening effect on new orders, construction companies' sales remained robust in July, with a real turnover increase of 4.6 percent compared to the previous year.

Nominal sales rose by 9.4 percent to 12.1 billion euros. The number of employees in the construction sector also grew by 1.5 percent year-on-year, reaching approximately 545,000 people. These figures are based on businesses employing 20 or more people. The industry hopes for the special fund for infrastructure and climate neutrality proposed by the federal government, although it criticized the lack of immediate funds for the initiative. More: More building permits, but the industry remains skeptical.