Real SA Construction Orders M/M:

November -4.8%
October +5.3%
September -3.3%
August -1.3%
July +4.9%
June -2.2%
May -2.4%
April -4.6%
March -2.0%
February +15.7%
January -8.0%
December +5.2%
—–

FRANKFURT (MNI) – New orders in Germany’s construction sector fell
back in November, retracing most of October’s rebound, as all major
components except housing demand lost ground, the Bundesbank reported on
Tuesday.

In the month since October, new orders decreased 4.8%, narrowing
the annual gain to +0.2% from October’s +3.0%.

Earlier today, Federal Statistical Office also reported a slowdown
in annual growth, with new orders up only 0.5% in November.

Residential building orders rebounded 1.6% between October and
November, boosting the annual gain to 5.4%. However, the 7.5% monthly
decline and -4.2% annual slide in non-residential new business left
overall structural construction demand 4.6% lower on the month and down
1.1% on the year.

Civil construction orders also suffered losses in November, falling
5.0% compared to October, but were up 1.7% on the year.

Despite harsh weather conditions in December, new orders remained
relatively resilient to close out 2010, with the decline slower than the
long-term average, firms polled in Markit Economics’ purchasing managers
index (PMI) reported last month.

However, bad weather hit output much harder, lowering the PMI to
36.0, its lowest point since February. Looking ahead, construction firms
remained pessimistic regarding the outlook for activity in the coming
year, as a number of companies expect public spending on construction
projects to decline, Markit noted.

After the European Commission survey showed a slide both in
confidence and in order book assessment in December, the latest Ifo
business climate pointed to a recovery in morale in January, with
respondents more satisfied with their present business situation and
their six-month outlook climbing sharply to the highest level in years.

Echoing this optimism, Germany’s DIW research institute forecast
that construction activity would contribute to overall economic growth
this year.

The Construction Industry Association HDB expects home building to
expand further this year after a 6% recovery last year. If the economic
upswing remains on track, commercial construction could emerge from the
slump that dragged down sales by an estimated 4.5% last year, the HDB
said earlier this month. Total sector activity is expected to stagnate,
however, due to a further slide public construction.

— Frankfurt bureau: +49 69 720 142; E-mail: frankfurt@marketnews.com —

[TOPICS: M$G$$$,M$X$$$,MAGDS$,M$XDS$]