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German Construction Sector Records 8.7% Revenue Growth

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German Construction Sector Records 8.7% Revenue Growth

Despite a slight economic slowdown, Germany’s construction industry sees a revenue increase of 8.7 percent

European superpower Germany is known across the globe for its successful ventures in most of its industries. The country’s construction industry is no exception. Despite Germany’s exports being affected due to trade tensions, a global slowdown and the chaotic run-up to Brexit, domestically its construction industry has emerged unscathed this month. Since the beginning of September, Germany’s construction industry recorded a revenue hike of around 9 percent. 

Experts hope that the growth trajectory recorded in Germany remains steady. This is because a decline in  exports did affect Germany’s economy and it fell 0.1 percent in the second quarter. Just last month, Germany’s construction industry had experienced a slight hiccup. Between July and August, the purchasing managers index had reduced to 46 points from the previous 49 points. Any value below the 50-point mark means that growth and revenue of the industry has been hit. 

Reinhard Quast, the head of ZDB (German Construction Confederation) said, “We still assess our industry’s position as positive.” He added that the construction industry is Germany’s most prominent growth driver. It is a known fact that the majority of the country’s economy depends on its robust domestic spending driven by high employment and a very strong demand in the construction sector.

He added that the construction industry is Germany’s most prominent growth driver. It is a known fact that the majority of the country’s economy depends on its robust domestic spending driven by high employment and a very strong demand in the construction sector.

As per ZDB’s revenue growth forecast in nominal terms for 2019, Germany’s construction industry recorded a growth of  8.7 percent. Last year it was 6 percent. ZDB is predicting an additional 5 percent rise next year. 

This rise has been due to fiscal incentives which help Germans acquire property. These incentives have cut down the shortage of housing in Germany.

There is a lot going on in Germany’s real estate industry. Recently, Germany’s real estate giants Aroundtown and TLG Immobilien were in the news for discussing a merger in order to establish a pan-European commercial real estate giant worth 25 billion euros ($28 billion).

Source: ET Realty

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