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Revenue and new orders, overcoming obstacles in growth

Construction sector shows a minor uptick in intake and rotation, yet remains subdued. Theprogress in road building is sluggish, while residential construction displays some stability without a clear reversal.

Growth in sales and new orders despite various obstacles or hindrances
Growth in sales and new orders despite various obstacles or hindrances

Revenue and new orders, overcoming obstacles in growth

The German construction industry has shown signs of recovery in the first half of 2025, with a real order increase of 7.2% compared to the corresponding previous year. However, the industry's order volume remains below the levels seen in 2022.

Felix Pakleppa, CEO of the Central Association of the German Construction Industry (ZDB), addressed these figures in a statement. He noted that while the industry is benefiting from increasing orders, sectors such as building construction and road construction are still struggling due to the overall economic situation in Germany.

In September 2025, the building construction sector reported a nominal increase in orders of around 12%, but the order volume, adjusted for price developments, is still more than 25% below the level of 2022. The ZDB attributed this to the sector's burden under the current economic conditions.

On a positive note, the ZDB reported a stabilization of the demand for residential construction in September 2025. However, the current approval figures do not give cause for hope of a sustainable recovery. The HDB concluded that the low building permit numbers explain the low volume in residential construction.

The construction industry barometer for August 2025 shows at best a sideways trend, indicating a slow and steady growth. For June 2025, a real plus of 2.9% compared to the previous year is reported, but there was a decrease of 2.6% compared to the previous month, suggesting a fluctuating recovery.

The civil engineering sector, on the other hand, is benefiting from sustainable investments in energy and transport infrastructure. The federal-owned Autobahn GmbH has lifted the bidding stop and granted missing funds, which is expected to have a positive effect on construction activity and numbers in the second half of the year. This action by Autobahn GmbH is hoped to revive road construction in the second half of 2025, as otherwise, it could be a lost year for road builders.

In response to these challenges, the ZDB is advocating for a new EH 55-Plus program, a subsidy that combines the energy-efficient house standard 55 with a 100% renewable heating solution. The federal government is still responsible for implementing its right and important projects from the coalition agreement to help the construction industry.

Mรผller, a representative from the construction industry, expressed hope for this revival, emphasizing the importance of the construction industry for the German economy. However, with the order volume still below pre-pandemic levels, the industry has a long road to recovery ahead.

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