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German construction industry lowers turnover forecast

17.06.2020 − 

The Zentralverband Deutsches Baugewerbe (ZDB) expects that the effects of the corona crisis will also lead to turnover declines in the construction industry. Across all construction sectors, the current May forecast anticipates nominal turnover to remain stable or decline by up to 2% vis à vis 2019. In real terms this would correspond to a decline between 2% and 5%. According to ZDB president Felix Pakleppa, a high order volume was already cancelled at a very early stage. For the second half of 2020 incoming orders are expected to continue to decline.

This particularly affects the commercial building sector, where retail trade, tourism and service providers are suffering considerably from the measures imposed to curb the corona virus. For this construction sector a nominal decline of 3.5%, corresponding to a decline of 7% in real terms, is anticipated. Problems are, however, also expected in the public construction sector. Particularly municipalities which are also challenged by increased social security contributions in addition to tax losses, are reviewing their investment projects critically. Housing construction is the only segment for which the ZDB anticipates a nominal turnover increase of some 3%.

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