German construction sales to grow by 4 pct this year - associations
18/01/2018 10:38
BERLIN, Jan 18 (Reuters) - German construction companies
expect sales to grow by 4 percent this year, reaching their
highest level since 1995, industry associations said on
Thursday, suggesting the sector will continue to propel growth
in Europe's biggest economy this year.
Germany is enjoying a construction boom due to higher state
spending on roads and bridges, increased company investment in
buildings, and a real estate bonanza.
The construction boom has been encouraged by the European
Central Bank's ultra-low interest rates, a growing urban
population and high immigration over the past five years.
The ZDB and HDB construction associations said in their
joint forecast that nominal sales would rise by 4 percent to
117.2 billion euros in 2018, close to levels last seen during
the boom times following unification and the economic upswing in
East Germany in the mid-1990s.
"Construction companies are confident about the year 2018,"
said Peter Huebner, president of the HDB association, which
represents large industrial construction firms such as Hochtief
HOTG.DE . The ZDB association includes more than 35,000 small-
and medium-sized firms that form the backbone of Germany's
construction sector.
With prices expected to rise by 3.5 percent this year in the
construction sector, however, real sales are expected to grow by
only 0.5 percent to reach 98 billion euros ($120 billion), the
associations added.
Employment in construction is expected to rise by 15,000 to
820,000 people, although a growing number of companies are
struggling to find skilled workers, they added.
Construction was one of the main growth drivers last year
when the euro zone's largest economy expanded by a
calendar-adjusted 2.5 percent, the strongest rate since 2011.
For 2018, the Ifo economic institute has forecast 2.6 percent
growth.
($1 = 0.8185 euros)
(Reporting by Michael Nienaber; Editing by Gareth Jones)
((michael.nienaber@thomsonreuters.com; +49 30 2888 5085;
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Keywords: GERMANY ECONOMY/CONSTRUCTION