German construction orders see pick up
German construction orders rebounded in October, with recoveries noted across all major areas of the sector, the Bundesbank reported on Monday.
On the month, seasonally adjusted construction demand rose 3.6%, leaving the annual change at +0.3%. Compared to the third quarter average, orders were down 0.65% in October.
Structural housing registered the stronger jump, rebounding 6.7% between September and October, while civil construction climbed 2.8%. Structural non-housing recovered by 3.7% on the month.
In non-seasonally adjusted terms, construction orders in Germany decreased 0.7% annually, the Federal Statistical Office reported earlier in the day.
In October, construction output in Germany slid 2.4%, adding to September’s 2.7% decline, Eurostat noted earlier in the month.
While construction production continued to lose ground in November, firms polled in the latest construction purchasing managers index (PMI) reported that the decline was the slowest in six months.
Part of the weakness in construction output was attributed on ongoing deterioration in new orders (37.7 from October’s 39.9), Markit Economics, the firm that conducts the PMI survey, said.
"Latest data pointed to a sharp and accelerated drop in new orders, with the rate of reduction the fastest for five months," Markit added. As a result, the German construction PMI remained below the no-change level at 44.6.
In December, construction firms were "less dissatisfied with their current business situation," the Ifo institute said last week. However, the business outlook for the sector was assessed with the same "restraint" as before.
Construction activity is expected to recover 2.1% in 2010, according to average forecasts from various research institutes surveyed by the German Construction Industry Federation (HDB).
Germany’s council of independent economic advisors expect a 0.4% decline in construction activity this year and a 1.2% recovery next year.
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