Enhanced conditions prevail in the construction sector
In the heart of Germany, the construction industry in Stuttgart and the broader market is experiencing a moderate growth in order intake during the early months of 2025. This encouraging trend suggests a stable demand and prospects for economic stimulus in the second half of the year.
Companies like KSB SE & Co. KGaA have reported a 3.3% increase in order intake in the first half of 2025, indicating a continuation of growth in infrastructure and construction-related orders. The renewable energy sector, which is closely linked to construction through projects such as wind farm developments, has also shown strong performance. Firms like Nordex Group have seen substantial order increases in Q2 2025, primarily originating from Germany. This sector's robust activity is expected to drive further construction and engineering work, supporting economic stimulus.
On a macro level, German manufacturing, which includes construction material production, showed a slight month-on-month rise in orders (+0.4% in May 2025), signifying steady industrial activity that underpins the construction industry. However, some manufacturing order volumes saw minor declines, indicating cautious market conditions overall.
Thomas Moeller, CEO of the Baden-Wuerttemberg Construction Industry Association, has expressed a cautiously optimistic outlook for the German construction industry, including Stuttgart. The order intake in residential construction has increased by 9.2% from January to April compared to the previous year, as reported by the Statistical Office of the State. However, Moeller emphasizes that the construction industry's economic situation remains fragile and the need for politics to improve the framework conditions in residential construction and increase infrastructure investments is crucial.
Despite the increase, Moeller predicts that building permits will continue to remain at a low level. The construction industry association is hopeful about the federal government's infrastructure fund in road construction and other civil engineering, with the additional funds expected to translate into concrete orders in the second half of the year.
It is important to note that while there has been a noticeable improvement, no solid trend reversal has been achieved in the construction industry. A downturn was observed in April with a decrease of 4.9% in order intake. Overall, the outlook for the construction industry is currently more favorable than it was last year, according to Moeller.
For more information, you can contact Wolfgang Leja from the construction industry association at 0711 66601-131 or visit our website. The construction industry in Stuttgart had an order intake increase of 6.5% compared to the previous year from January to April. As the year progresses, the industry will continue to be closely monitored to assess sustained growth prospects.
- The upward trend in the construction industry in Stuttgart and the finance sector could potentially benefit from the strong performance in the renewable energy sector, as increased orders for wind farm developments might lead to more engineering work and stimulate economic growth.
- The CEO of the Baden-Wuerttemberg Construction Industry Association, Thomas Moeller, suggested that the finance business could play a crucial role in shaping the future of the construction industry, with the need for political improvement in residential construction and infrastructure investments having the potential to drive further growth and order intake.
