The index of business activity in the German construction sector increased to 45.1, rising from March's level of 40.3. This was the highest level in the last two years, demonstrating that the recession in the industry has slowed significantly, and its scale has decreased to the lowest since mid-2023. Although the overall level of overall activity was in the decline zone, the decline was observed in all key segments: residential, commercial, and civil engineering. New order volumes improved, showing a significant slowdown, and the demand index rose to its highest level since early 2022, despite high price pressures and market uncertainty. Although business expectations weakened slightly after the 37-month peak in March, optimism remains in the industry. The delivery time of materials has improved for the 13th time in the last 14 months. In addition, the supply of materials has improved for the 13th time in the last 14 months. However, the dynamics in the labor market again showed an acceleration in job cuts after a temporary slowdown in March. At the same time, the decline in procurement and the use of subcontractors continued to soften, supporting the general trend towards stabilization.
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