German construction sentiment plummets. The ifo Institute reports a historic low in German residential construction sentiment. The business climate index has fallen to -59.0, marking the lowest value ever recorded.
Business expectations also declined, reaching -68.9 points. Klaus Wohlrabe, ifo’s Head of Surveys, highlighted the sector’s bleak outlook.
He noted the significant impact of order shortages and project cancellations. Despite a slight improvement, Wohlrabe cautioned against optimism, citing unchanged tough conditions.
High interest rates and construction costs continue to challenge the industry. The ifo Institute’s findings emphasize the severe downturn in the residential construction sector.
Polymers such as PP, PS, PC, PMMA, and POM, are feeling the pinch of the construction sector’s downturn, not only in Germany but also across the EU. Market conditions for these polymers, heavily reliant on construction activity, reflect this trend, with many suppliers reporting low demand from the sector.