Real SA Construction Orders M/M:

August -1.2%
July +5.0%
June -1.1%
May -3.1%
April -6.0%
March -1.5%
February +16.1%
January -7.5%
December +5.8%
November -3.1%
October +2.3%
September -4.7%
—

FRANKFURT (MNI) – Construction orders in Germany fell back in
August, partially reversing July’s jump, as weakness in civil
construction demand more than offset a further gain in structural
construction orders, the Bundesbank reported on Friday.

As a result, construction orders fell 1.2% both on the month and on
the year in August. However, taking into account July’s increase, the
two-month average was still 2.5% higher than in the second quarter.

Adjusting for price changes, new business rose 0.5% on the year in
August, while orders gained 2.9% over the first eight months of the year
compared to the same period in 2009, the Federal Statistical Office
reported earlier in the day.

Residential building orders jumped 8% from July to August, while
non-residential building orders were up 5.9%. As a result, overall
structural construction new business rose 6.6% on the month to give an
annual gain of 7.2%.

Conversely, civil construction orders plummeted 9.2% on the month
and were 9.9% below the previous-year level.

Unable to build on July’s rebound, output in the construction
sector fell back 0.4% in August, leaving the two-month average down 0.3%
compared to 2Q.

Construction firms cited in the latest purchasing managers poll
reported another fall in new business for September, suggesting downside
risks ahead. Their outlook for the next 12 months fell to the lowest
level since June, reflecting concerns about public sector construction
spending over the next year.

Builders polled by the European Commission also said recent
activity had slowed, leaving the sub-index at its lowest level since
May. Nevertheless, with orders and employment prospects improving in
recent months, the overall sentiment indicator rose in September to the
highest level in almost four years.

The Ifo institute’s latest sector survey showed a marginal
improvement in current conditions, which helped to offset the ongoing
deterioration in business expectations. As a result, the overall
sentiment index recovered in September, partially retracing August’s
sharp fall.

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

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