Global Economic News

German Residential Construction Outlook Bleak, Ifo Survey Finds

Germany's residential construction sector outlook remained bleak amid rising cancellations and record low business expectations as high inflation, rising interest rates and less subsidies damp activity, results of a survey by the ifo institute showed Monday.

Cancellations in the German residential property construction grew further in November, with the survey showing that the share of surveyed companies affected rose to 16.7 percent from 14.5 percent in the previous month.

"Companies still have well-filled order books," ifo researcher Felix Leiss said.

"But constantly climbing construction prices, higher interest rates, and fewer subsidy options are weighing on new business."

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by Jyotsna V

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