German Building Industry Order Value Grows

The value of orders received by Germany's building industry rose 14.9% year-on-year, on a price-adjusted basis, in March, the Federal Statistical Office said Tuesday.

The significant increase was largely due to big orders, the Wiesbaden-based agency said. Meanwhile, total turnover in the industry fell 9.3% year-on-year in March to nearly EUR 5.3 billion. The number of persons employed in the building industry amounted to 680,000 at the end of March. The figure reflected a 2% or 14, 000 decline from last year.

The building industry in Germany consists of building construction and civil and underground engineering enterprises. Building construction registered a 14.3% growth in demand, while in civil and underground engineering, bookings increased 15.6%.

During the first quarter, the value of construction industry orders grew 10% from a year ago. However, turnover dropped 17.1% year-on-year to around EUR 11.2 billion. The number of persons employed in the sector also declined 0.5% to 673,000.

The German economy expanded 0.2% in the first quarter, underpinned by government spending and exports, detailed data from the statistical agency showed last week. The economy managed to grow despite a slump in the construction sector caused by the harsh winter. Output in the construction sector dropped 3.7% annually in the first quarter. A Markit Economics survey showed that the construction sector expanded in April for the first time in 26 months due to better weather conditions.

by RTTNews Staff Writer

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