Cement consumption in Germany has fallen to levels not seen since before World War II, said Dominik von Achten, president of the Federal Association of Building Materials – Stones and Earth (BBS) and CEO of DAX-listed Heidelberg Materials, in an interview with dpa. Consumption is around 30 percent below 2020 levels. “This is no longer stagnation, this is recession,” von Achten said.
The crisis affects nearly all sectors of building construction and civil engineering. Achten cited high interest rates and increased construction and ancillary costs, also driven by the Iran war, as reasons. Private residential construction is being held back, while investment in public infrastructure as well as industrial and office buildings is declining. Demand in residential construction remains weak.
The number of building permits has recently risen by about ten percent, but months pass before actual construction begins. For infrastructure projects, government funds from the federal government’s special fund have been announced and budgeted. Achten expects increased construction activity from the second half of the year.
Source: www.spiegel.de
