Increased Sales Volume and New Orders Amidst Obstacles
The construction industry in Germany has shown a slight recovery, according to the latest data, but the road to a sustainable and robust recovery remains long.
Felix Pakleppa, Managing Director of the Central Association of the German Construction Industry (ZDB), has observed a two-speed economic development in the sector. While the civil engineering sector benefits from sustainable investments in energy and transport infrastructure, the building construction sector continues to struggle due to the overall weak economic situation in the country.
The current approval figures do not give cause for hope of a sustainable recovery in the building construction sector. For residential construction, a significant real order increase of 9.5 percent is reported for the first half-year, but the volume still lags 31 percent below the level of 2021. The order volume in the building construction sector remains more than 25 percent below the level of 2022 in real terms.
The turnaround of the federal-owned Autobahn GmbH is aimed at granting the missing funds. The Autobahn GmbH, which had imposed a ban on tenders, has now lifted it. This decision is expected to have a positive effect on construction activity, with Müller, in a statement, expressing hope that the Autobahn GmbH's actions will have a positive impact on the figures in the second half of the year.
Unfortunately, the revenue has not yet turned positive after four years, despite the slight increase. For June, a real increase of 2.9 percent compared to the previous year is reported, but there was a decrease of 2.6 percent compared to the previous month. This stagnant growth is reflected in the Baukonjunkturmeter August 2025 report, which indicates a stagnant best-case scenario for the construction industry.
The ZDB is appealing for a new EH 55-Plus program, a promotion that combines the energy-efficient house standard 55 with a 100 percent renewable heating solution. The new program, called the "EH 55-Plus-Programm," aims to enable more people to build again.
The construction of roads has also shown a downturn, with a real order decrease of 5.2 percent reported in the first half-year (June: -13.7 percent). The ZDB continues to emphasize the need for the federal government to resolutely implement its important projects from the coalition agreement. Müller hopes for a revival in the second half of the year for road construction, as otherwise, this year will be a lost year for the road builders.
In conclusion, while the construction industry in Germany has shown some signs of recovery, the challenges remain significant, particularly in the building construction sector. The ZDB's calls for the implementation of key projects and the introduction of the EH 55-Plus-Programm indicate a focus on sustainable and energy-efficient solutions, which could pave the way for a more robust recovery in the future.
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