Outlook for residential construction in Germany improves

The outlook for Germany's residential construction sector significantly improved in September, with the Business Climate Index climbing from -26.4 to -21.8 points. 

Ifo Institute predictions

This marks the highest sentiment level since August 2022, indicating that construction firms are feeling more optimistic about both their current situation and prospects. 
According to Klaus Wohlrabe, Head of Surveys at the ifo Institute, while it's premature to declare a full recovery, the industry appears to have moved past its lowest point.
However, challenges persist despite this improved sentiment. The volume of new orders remains a concern, with the percentage of companies reporting insufficient orders slightly increasing from 45.7% to 46.7%. Project cancellations also remain frequent, though they saw a marginal decrease from 8.5% to 8.4%. 
Wohlrabe notes that the recent rise in building permits has not yet translated into a stronger order pipeline for companies.