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German construction industry cuts revenue growth forecast to 1%
The German Construction Industry Association (HDB) has lowered its revenue growth forecast for the current year to 1 percent, down from an initial projection of 2.5 percent. This adjustment follows rising costs linked to the conflict in Iran and the closure of the Strait of Hormuz, which 80 percent of surveyed companies claim has impacted their operations.
Industry members are facing significant pressure from increased energy and material prices. According to the HDB, 75 percent of companies are unable to pass these costs on to clients, and 43 percent expect a decline in earnings. Furthermore, approximately 20 percent of businesses reported delays in ongoing projects.
The slowdown is also attributed to the slow release of funds from the 500 billion euro Special Fund for Infrastructure and Climate Neutrality (SVIK). Between January and July, only 33 percent (7.3 billion euros) of the funds allocated for transport infrastructure had been utilized. In the 'Construction and Housing' sector, utilization was even lower at just 4 percent. Despite these challenges, the HDB expects the industry to hire between 10,000 and 12,000 additional employees this year.
Entities
Germany · Hauptverband der Deutschen Bauindustrie · Strait of Hormuz · Tim-Oliver Müller
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The HDB reduced its revenue growth forecast for the construction industry from 2.5 percent to 1 percent. www.nachrichten-heute.net · www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de
- [● 2 SOURCES] Only 7.3 billion euros, or 33 percent, of the Special Fund for Infrastructure and Climate Neutrality (SVIK) for transport infrastructure was utilized between January and July. www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de
- [● 3 SOURCES] 80 percent of survey participants reported that the closure of the Strait of Hormuz impacts their business. www.nachrichten-heute.net · www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de
- [● 2 SOURCES] Only 4 percent of the SVIK funds have been utilized in the 'Construction and Housing' investment area. www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de
- [● 3 SOURCES] 43 percent of respondents expect a decline in earnings. www.nachrichten-heute.net · www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de
- [● 2 SOURCES] The construction industry expects to hire between 10,000 and 12,000 more employees this year compared to the previous year. www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de
- [● 3 SOURCES] Three quarters of companies are unable to pass increased costs for diesel and materials on to their clients. www.nachrichten-heute.net · www.berliner-sonntagsblatt.de · www.oldenburger-onlinezeitung.de