{"id":195816,"date":"2023-11-13T05:39:07","date_gmt":"2023-11-13T05:39:07","guid":{"rendered":"https:\/\/tokenstalk.info\/?p=195816"},"modified":"2023-11-13T05:39:07","modified_gmt":"2023-11-13T05:39:07","slug":"german-residential-construction-order-cancellations-climb-to-new-high-ifo","status":"publish","type":"post","link":"https:\/\/tokenstalk.info\/business\/german-residential-construction-order-cancellations-climb-to-new-high-ifo\/","title":{"rendered":"German Residential Construction Order Cancellations Climb To New High: Ifo"},"content":{"rendered":"
Cancellations of residential construction projects in Germany rose to a new high in October as housing demand weakened further, results of survey by the ifo institute showed Monday, adding to signs of recession in the biggest euro area economy<\/span>.<\/p>\n The share of companies that reported canceled housing projects rose to 22.2 percent from 21.4 percent in the previous month.<\/p>\n “It’s getting worse all the time, with more and more projects failing due to higher interest rates and elevated construction prices,” Klaus Wohlrabe, head of surveys at ifo, said.<\/p>\n “In residential construction, new business<\/span> remains very low and companies’ order backlogs are diminishing.”<\/p>\n The October survey saw 48.7 percent companies reporting a lack of orders, up from 46.6 percent in the previous month. A year ago, the proportion was 18.7 percent.<\/p>\n “The situation is putting several companies under threat, with one in ten having already reported financial difficulties,” Wohlrabe added.<\/p>\n “The outlook for the residential construction industry remains bleak as companies brace themselves for hard times.”<\/p>\n Expectations in the residential construction industry sunk to an exceptional low of -63.9 points in October, ifo said.<\/p>\n Housing activity was again the worst-performing area of construction in September, the S&P Global purchasing managers’ index survey showed.<\/p>\n The decline in residential building projects slowed from August, which had logged the worst fall for more than thirteen years, the PMI survey revealed.<\/p>\n The S&P construction PMI survey for October is due on November 7. <\/p>\n