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Latest news: Germany’s construction industry

Construction site in Duesseldorf, Germany | © Getty Images/Westend61 Here you can find recent news stories related to Germany’s construction industry. Be sure to subscribe for monthly updates on energy efficiency in Germany using the link on the right.

June 18: Year starts with strong growth in construction investment

June 2018

DIW Berlin’s regular analysis of the German economy highlights especially strong growth in investment in construction at the beginning of the year.

“The big jump in orders at the end of 2017 made itself felt – especially in residential and commercial construction – temporarily causing a lot of bustle on the construction sites,” the report states.

The author expects strong growth in the second quarter, in particular in residential and commercial construction: “The order books are full, the need for new housing continues to be high and interest rates low.”

The report cautions that an acceleration in growth is not to be expected, citing stagnation in the number of approvals for new construction projects and the rising cost of construction due to capacity bottlenecks, rising raw material prices and higher wages.

Investment in construction in real terms (constant prices, change in percent)

Share in percentChange on previous year
Residential construction60.8-
Non-residential construction 39.2 - 3.42.5
Commercial construction27.
Public construction11.8-0.82.7 2.01.8 2.3
Construction investments100.0-
Equipment investments3.

Source: Federal Statistical Office; DIW Sommergrundlinien 2018

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