German construction sector sinks outlook as prices surge

BERLIN (Reuters) – Rising prices for building materials and energy are expected to hit Germany’s construction sector this year, with an industry group dimming its outlook for 2022.

The Deutsche Bauindustrie (German Construction Industry) said on Wednesday it expects a development in construction-related sales in the main construction sector of between 0 and minus 2% in the current year in real terms.

The association said the sector had weathered the fallout of the COVID-19 pandemic well and had initially projected real-term growth in sales of 1.5% for 2022.

(Reporting by Rachel More, Editing by Miranda Murray)