German residential construction morale posts sharpest drop in four years
German residential construction morale posts sharpest drop in four years
ReutersFri, May 15, 2026 at 7:00 AM UTC
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Residential buildings are seen in the district of Marzahn-Hellersdorf in Berlin, Germany, February 7, 2023. REUTERS/Lisi Niesner
May 15 (Reuters) - German residential construction sentiment suffered its steepest drop in four years in April, with firms turning sharply more pessimistic about both current conditions and the outlook.
The Ifo institute's business climate index for the sector plunged to minus 28.4 points last month from minus 19.3 in March, a survey showed on Friday.
"Geopolitical uncertainty is now also weighing on residential construction in Germany," said Klaus Wohlrabe, Head of Surveys at Ifo. "With fragile supply chains and rising financing costs, several risks are hitting the construction sector simultaneously."
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In April, 9.2% of companies reported constraints in their supply of materials, a sharp increase from about 1% over a two-year period previously, with especially basic materials being affected.
The share of companies reporting too few orders remained stable at 43.8%, the institute said.
(Reporting by Linda Pasquini, Editing by Kirsti Knolle)
Source: “AOL Money”
