Business sentiment among Germany's residential construction companies further deteriorated in June, as the industry continues to face low demand despite an increase in building permits, the ifo Institute survey said Monday.
The ifo business climate index for the sector edged down to -31 points from -29.5 points a month ago, with companies viewing both their present situation and prospects as "worse." The institute noted that business expectations fell to their lowest level since March 2025.
Surveyed companies that reported "too few" orders edged up to 43.7% from 42.2%, whereas cancellations of construction projects stayed at a higher level of 11.4%, as material supply remains a concern.