The number of orders in the German construction industry collapsed in September after strong growth in the previous month. Adjusted for inflation, new business in the construction industry shrank by 7.3 percent (in real terms) compared to August, as the Federal Statistical Office announced on Friday. In the previous month, new business increased sharply due to major projects. The bottom has not yet been reached in housing construction, according to a statement from the Main Association of the German Construction Industry. “In addition to the situation in housing construction, we are concerned about the ruling of the Federal Constitutional Court and its impact on federal and state budgets,” said managing director Tim-Oliver Müller, referring to the budget crisis.
Last week, the Federal Constitutional Court decided, with reference to the debt brake anchored in the Basic Law, that the 60 billion euros originally approved as a Corona loan in the 2021 budget may not be subsequently reallocated for investments in climate protection and the modernization of the economy. “Under no circumstances should investments be cut and important infrastructure projects put on hold. Project awards must continue, as must the preparation of new measures,” said Müller. “If it were to stop now, the effect would not be made up for months.” Federal Chancellor Olaf Scholz and Construction Minister Klara Geywitz had previously declared that they wanted to stimulate the sluggish housing construction with a 14-point package of measures.