A study by the German Construction Industry Federation (HDB) released on Tuesday predicts a contraction of 4% for the German construction industry in 2024. This figure is slightly higher than the previously anticipated decline of 3.5%. The report forecasts a corresponding loss of around 10,000 jobs within the sector.

The HDB attributes the downward trend to weakness in residential construction, where sales are expected to decrease by 12% in real terms. Public construction projects are also projected to underperform earlier expectations.

These findings contribute to a generally negative outlook for the construction industry in Germany, Europe's largest economy, which is currently grappling with rising interest rates, high inflation, and economic stagnation.

"Another figure is particularly concerning," stated HDB President Peter Huebner. "In the employment forecast, we expect a reduction of 10,000 employees." He continued, emphasizing, "there can only be one solution: build, build, build."

The study identified commercial construction as the sole area of growth, with anticipated sales increase of 1.5%. This projected rise is attributed to substantial orders from Deutsche Bahn, electricity network operators, and local transport companies.