German Construction Sector Sees October Rebound with 5.6% Order Growth

After a challenging year, Germany's construction industry reports increased orders and hopes for further recovery as interest rates decline.

Orders in Germany's construction sector rose by 5.6% in October compared to the previous month, marking a significant improvement after a sharp contraction in September.
Both residential construction (Hochbau) and infrastructure projects (Tiefbau) contributed equally to the October growth figures.
Despite the October rebound, the industry's year-to-date performance remains weak, with orders down 1.9% and inflation-adjusted revenues shrinking by 1.0% compared to the same period last year.
The European Central Bank's four interest rate cuts in 2024 have made borrowing more affordable, raising hopes for a gradual recovery in construction activity, particularly in housing.
The Central Association of the German Construction Industry (ZDB) forecasts continued low levels of housing completions, with only 250,000–255,000 units expected in 2024, far below the government's annual target of 400,000.