Construction activity – industry pessimistic – economy

According to a survey, the economic consequences of the Ukraine war are hitting German industry and the construction sector particularly hard. The mood there has deteriorated significantly. The German Economic Institute (IW) therefore sees industry and the construction industry on the verge of recession. In this case, production would no longer grow but shrink. Hopes for the German economy rest on the service industry, which expects better business than 2021 this year due to the end of the restrictions to combat the corona pandemic. “We are counting on the service sector developing a strong, stabilizing force,” said IW economic expert Michael Grömling of the dpa. In particular, the high energy prices, which have recently increased further as a result of the war, are causing problems for the companies. Added to this is the fear of additional material and delivery difficulties.

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