Cancellations peak in Germany's residential construction sector

According to a survey by the economic think tank Ifo, a large number of companies cancelled their projects in October. 22.2 percent of real estate development companies cancelled their projects. According to the survey, the rate of cancelled projects was 21.4% in September.

Klaus Wohlrabe, head of the Ifo economic research department, said: "The situation is getting worse every day. Projects are failing due to high interest rates and high construction prices. New work in residential construction remains very low and companies' order backlogs are shrinking."

The rate of lack of orders reported by companies in September was 46.6%, while in October it was 48.7%. In October 2022, this rate was much lower at 18.7%.