Deutsche Bauaufträge nehmen im Juli um 9,2% ab – Wohnungsbau stagniert

The German construction industry experienced a sharp decline in orders in July, according to seasonally adjusted data. Orders fell by 9.2% compared to the previous month, with both the residential and the civil construction sectors affected: Residential construction projects recorded a decline of 8.4%, civil construction orders by 10%. While residential construction is dominated by housing projects, civil construction includes road and bridge construction. Over the less volatile period from May to July, however, the order intake was still 2.7% higher than in the preceding three months. Housing construction remains a key lever for the industry, but the development remains fragile. According to Felix Pakleppa, President of the German Building Industry Association ZDB, new construction continues to decline: 'The order books are getting thinner', he said. Although companies are still working with stocks from previous orders, the current situation remains tense. Pakleppa also warned of a setback at the end of the year: The special promotion for energy-efficient new buildings (EH-55) is expected to expire at the end of 2026, and for 2027, reductions in the construction budget are planned. A possible funding gap until summer 2027 cannot be ruled out. 'Such a 'building boom' is not possible,' Pakleppa criticized, questioning the efforts of the federal government to accelerate housing construction. While the construction industry has recently benefited from state investment in infrastructure and there has been some improvement in housing construction – building permits increased significantly – rising interest rates and construction costs are weighing on the situation. In July, the turnover of the main construction industry increased by 4.6% year-on-year, or 12.1 billion euros, adjusted for inflation. Employment increased slightly, but only in companies with at least 20 employees.