Residential construction sentiment in Germany improved in September, with the Ifo Business Climate Index rising sharply to its highest level since August 2022, it was announced today.
In a statement, the German Ifo institute said the business climate index rose sharply from minus 26.4 points in August to minus 21.8 points, the highest level since August 2022.
Companies assess both their current situation and expectations for the coming months as considerably better, says the institute.
“Residential construction can breathe a little easier,” says Klaus Wohlrabe, head of research at Ifo, quoted in the statement.
Wohlrabe also says that “although it is still early to talk about a real turning point, the lowest point seems to have passed”.
Despite the positive signs, the order situation remains tense, as the proportion of companies missing orders increased slightly from 45.7% to 46.7% in September.
The number of cancellations also remains high, although it has decreased slightly – from 8.5% in August to 8.4% in September.
“The increase in building permits has not yet been reflected in the order books,” says Wohlrabe.
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