German construction orders rebounded in the first half of the year
German construction companies increased the volume of orders in the first half of 2025 by 7.2% compared to the first half of 2024, Kallanish reports, citing its Bauindustrie association.
However, the association notes that the volume of orders has increased from a low level, a negative trend has persisted for four years. For example, the volume of housing construction increased by 9.7% year-on-year, but still 31% below the level of 2021.
In the last month of the reporting period, June, there was a smaller increase compared to the same period last year - by 2.9%, and a drop compared to May. This coincides with the results of a survey by the IFO Economic Institute (see a separate article), which reports a deterioration in sentiment in August, but nevertheless gives hope for the autumn months.
Bauinmdustrie notes that the second quarter was more hectic than the first. This coincided with a decline in German GDP in the second quarter. The Association believes that the biggest obstacle to investment in road infrastructure is government inaction.
She calls road construction the "problem child" of an industry that, in her words, "has practically collapsed." In the first half of the year, this segment saw a 5.7% year-on-year decline in orders, which even intensified in June to 13.2%. "If we don't see a recovery in the second half of the year, 2025 will be a lost year for road construction," says Managing Director Tim-Oliver Muller.
Christian Kel Germany
Kallanish.com