Germany’s construction sector posted strong growth in June, with orders, revenue and employment all rising, the Federal Statistical Office said.
Price and calendar-adjusted orders in the main construction sector grew 11.3% year-on-year, while price-adjusted revenues rose 6.6%, partly driven by large-scale contracts.
Orders rose sharply in both structural engineering, which depends on residential construction, and civil engineering, which includes road and bridge building.
Orders also rose strongly over the more meaningful three-month period from April to June.
Employment reflected that trend, growing 1.5% year-on-year in June to around 545,000 people.
“June was a good month for the construction industry,” said Felix Pakleppa, director general of the ZDB construction industry association. “Particularly encouraging is the strong increase in road construction and public-sector building. But after a volatile first half of the year, it would be premature to speak of a construction turnaround.”
Sector benefits from special fund
The construction sector is benefiting from the federal government’s multibillion-euro spending on roads and rail. Residential construction, however, remains sluggish, partly due to elevated interest rates that have settled at a high level and made building more expensive for private individuals and investors alike.
There have recently been signs of an upward trend in that area too: Building permits rose by just over 15% in the first half of the year, the strongest growth for that period since the first half of 2016.
