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[BUSINESS] · Germany · 5 sources

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Part of situation: German construction and crafts sector trends (16 clusters)

Germany faces economic strain in construction and crafts sectors

German economy construction industry crafts sector crisis business climate index economic challenges

Germany is facing significant economic challenges across multiple sectors. An Allensbach study indicates that while the construction industry remains highly relevant to the public and is viewed as a stable employer, there is growing uncertainty due to weakened economic growth.

The crafts sector is experiencing a severe downturn. According to the Central Association of German Crafts (ZDH), the business climate index for the second quarter of 2025 dropped by 13 points to 102. The revenue indicator for the sector fell to minus 12 points, and order backlogs have declined significantly to minus 15 points. The food and health crafts sectors saw the sharpest revenue declines.

Entrepreneurs are also expressing concerns regarding the country's competitiveness. Key issues cited include high energy prices, rising labor costs, and increasing bureaucracy. These factors are driving companies to increasingly shift their investments to locations outside of Germany.

Entities

Allensbach · Germany · Jörg Dittrich · Olaf Demuth · Zentralverband des Deutschen Handwerks

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] The construction industry remains highly relevant to the public despite economic uncertainties. www.architekturblatt.de
  • [○ 1 SOURCE] The business climate index for the German crafts sector fell by 13 points to 102 during the second quarter of 2025. apollo-news.net
  • [○ 1 SOURCE] Entrepreneurs cite high energy prices, rising labor costs, and increasing bureaucracy as reasons for the German economic crisis. jungefreiheit.de
  • [○ 1 SOURCE] Olaf Demuth views the construction sector as a reliable employer during difficult economic periods. www.architekturblatt.de
  • [○ 1 SOURCE] Order backlogs in the German crafts sector have significantly decreased, dropping from minus 3 points in spring to minus 15 points. apollo-news.net
  • [○ 1 SOURCE] The revenue indicator for the overall crafts sector decreased by 13 points to minus 12 compared to the previous year. apollo-news.net
  • [○ 1 SOURCE] Companies are increasingly moving their investments to locations outside of Germany. jungefreiheit.de

Sources

Allensbach-Studie: Bauwirtschaft bleibt hoch relevant [www.architekturblatt.de]
Wie zu „Corona-Zeiten“ – Krise im Handwerk verschärft sich gravierend [apollo-news.net]
Deutschlands Schussfahrt in den Abgrund: 15 Jahre Energiewende – ein einziger monströser Irrweg [journalistenwatch.com]
Germania, svolta da 800 miliardi: nuove opportunità per le imprese italiane [www.teleborsa.it]
Mittelständler reden Tacheles – Warum Deutschland in die Krise rutscht [jungefreiheit.de]