BERLIN – Construction companies in Germany are recording an increasing number of cancellations of housing construction projects. The share of companies facing cancellations reached almost one fifth in March.

Expectations for the coming months are quite pessimistic, a survey by the Munich-based Ifo institute showed.

“Conditions in housing construction remain tense. There are not enough new orders to compensate for the cancellations,” said Klaus Wohlrabe, head of surveys at Ifo.

The share of companies that reported project cancellations rose from 17.7 percent in February to 19.6 percent in March.

In March, 56.2 percent of companies reported a lack of orders; in February, that share was 56.1 percent. The economic climate in housing construction improved slightly, but it remains in negative territory. Expectations for the coming months are extremely pessimistic.

“Many companies are reducing their construction activities due to a lack of orders,” Wohlrabe said.

Source: index.hr