By Amit Alhat, dpaTIN24 Editor
17.11.2025, 09:04
Munich – The mood in Germany’s residential construction sector worsened slightly once more in October, according to the latest survey by the Munich-based ifo Institute released on Monday.
The ifo business climate index for housing construction fell from -22.0 to -23.0 points, reversing part of the strong improvement seen in September.
Companies reported being marginally less satisfied with their current business situation, while their expectations for the coming six months turned more pessimistic.
“The road out of the valley is still long,” said Klaus Wohlrabe, head of surveys at the ifo Institute. The persistent lack of new orders remains the central problem for the industry, he added.
On a slightly more positive note, fewer firms described their capacity utilisation as too low. The share dropped from 46.7% in September to 44.4% in October – the lowest level in around two years.
Wohlrabe also pointed to “considerable pent-up demand” in building permits that has built up over recent months. Only when more of these approved projects actually start will the order books fill sustainably in the long term, he stressed.
Order cancellations eased only marginally, from 8.4% to 8.0%, and thus remain at an elevated level.
The German construction sector has been in crisis for more than two years, weighed down by high interest rates, elevated building costs and bureaucratic hurdles.
Author: The India News 24
TIN24 (The India News 24) The India News 24 (TIN24) is a Mumbai-based news Digital Media focusing on breaking news, local and regional issues in India, with content primarily in Marathi. It was established with an X (Twitter) presence since July 2022. Owner & News Editor: Amit Alhat Education: BA in Mass Communication Journalism (Graduate) Experience: 12 years in journalism Platforms: - Website: https://theindianews24.in - X (Twitter): https://x.com/the_indianews24 - YouTube: https://www.youtube.com/@theindianews247 - Instagram: https://www.instagram.com/theindianews_24
