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German Residential Construction Order Cancellations Climb To New High: Ifo

By Jyotsna V   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

Cancellations of residential construction projects in Germany rose to a new high in October as housing demand weakened further, results of survey by the ifo institute showed Monday, adding to signs of recession in the biggest euro area economy.

The share of companies that reported canceled housing projects rose to 22.2 percent from 21.4 percent in the previous month.

"It's getting worse all the time, with more and more projects failing due to higher interest rates and elevated construction prices," Klaus Wohlrabe, head of surveys at ifo, said.

"In residential construction, new business remains very low and companies' order backlogs are diminishing."

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