Tag Archives: German construction sector

German property crisis deepens with one of worst falls on record – latest updates 

Germany’s construction sector continued to drag down Europe’s largest economy as its housebuilding industry suffered one of its worst declines on record, a closely-watched survey indicated.

The HCOB Germany Construction purchasing managers’ index (PMI) came in at 36.3 in January, down slightly from December’s 37 and among the worst figures ever recorded in the research. The Telegraph has the story.

Dr Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said the German construction sector “is extending and deepening its downturn which has been in place since April 2022 for another month, with no near end in sight”. 

It comes after a top German industry chief despaired that Olaf Scholz’s net zero policies are “absolutely toxic” in a stinging criticism of the chancellor’s leadership.

Siegfried Russwurm, head of the BDI, said his country’s climate agenda is “more dogmatic than any other country I know”.

He warned that Germany was being placed at a disadvantage because of the government’s phasing out of nuclear energy and switching to renewables from coal and gas.

“Nobody can say with any certainty today what our energy supply will look like in seven years’ time, and that’s why no one can say how high energy prices will be in Germany then,” he told the Financial Times. 

“For companies that have to make investment decisions, that is absolutely toxic.”

Germany’s economy shrank by 0.3pc last year, while the OECD said its gross domestic product would expand by just 1.1pc in 2024.

Read the full story here .