Construction Sector Tumbles Again, Blaming Civil Engineering Slump
In a surprising turn of events, the main construction sector reported a notable drop in new orders for the third consecutive month in September. The Federal Statistical Office reported a 7.3% decrease compared to the previous month, a figure mostly influenced by a significant decrease in civil engineering orders. While construction companies in building construction saw a 7.9% increase in orders, civil engineering orders plummeted by a staggering 18.8%.
This downfall can be partially attributed to the unusually high orders in August, which were a result of several significant projects. Despite the overall decline, the building construction sector still presents room for growth with its 7.9% increase in orders. Conversely, the civil engineering sector appears to be struggling, with a significant drop in orders.
Furthermore, the first three quarters of the year saw a 5.6% decrease in real terms in incoming orders compared to the same period last year. This decline was primarily due to the initial low level of orders and recent challenges in the residential construction sector.
In-depth analysis reveals several factors contributing to this civil engineering slump:
- Clients' delayed decision-making
- Economic uncertainty
- Subdued market conditions in residential building
- Disruptions from unusually wet weather
- Lack of tender opportunities and client reluctance
These factors collectively influence the decline in new orders in the civil engineering section of the construction sector. Despite the challenges, the construction sector continues to evolve and adapt to the shifting market conditions.
