Herring News: Improved Optimism in Housing Construction - Order Crisis Persists
Housing sector sentiments enhance - Persisting challenges persist in the order scenario - Navigating housing construction supply chain: Ordering issues persist and complicate mood improvement
Here's the current scorecard in the world of housing construction: Things are looking up, but they're still far from cracking open a few cold ones and popping the champagne. That's according to Klaus Wohlrabe, the man with the pulse on all things economic, and he's the big honcho over at the Ifo Institute of Economic Research.
He spilled the beans recently, saying that while companies are feeling a smidgen more positive about the current and future state of housing construction, it's not entirely clear if the government's new infrastructure package is having any major impact just yet[1]. But hey, we're banking on a general upward swing, right? That's what Wohlrabe is hoping for anyway.
But don't go popping that cork just yet, mate. The order situation is still a right old mess[2]. Over half (51.2%) of the surveyed companies reported a serious lack of orders - down slightly from March (53.7%). And it's not just that there aren't enough orders rolling in; there are also more cancellations than in the past month (10.4%). That's an increase of 2.6 percentage points, sheesh.
On Thursday, the brand-spanking-new Federal Minister of Housing, Verena Hubertz (SPD), will step before the great unwashed masses of the Bundestag to roll out her program. And in a sneak peek interview with "Zeit Online" on Wednesday, the lady hinted that state guarantees for financing new apartments might be on the table[3].
Now, her predecessors were speaking big game, promising to build an astounding 400,000 new apartments each year. But that magic number doesn't appear in the coalition agreement between the CDU, CSU, and the SPD. So we'll have to wait and see what the Minister has up her sleeve.
- Munich is not mentioned in the cited reports since the Ifo Institute focuses on national-level data rather than regional breakdowns.
[1] Source: Ifo Institute Press Release
[2] Source: Ifo Institute Summary
[3] Source: Zeit Online Interview
- Despite the improved optimism in housing construction, the employment policy within the sector remains a critical concern, as Wohlrabe from the Ifo Institute emphasized the need for clarification regarding the government's new infrastructure package's impact on the industry.
- As the new Federal Minister of Housing, Verena Hubertz, prepares to unveil her program, there's growing anticipation for her potential announcement of state guarantees for financing new apartments, which could significantly impact the existing employment and finance policies within the business.
