Steep decline in orders for Germany’s construction sector in January

The German construction sector saw a sharp drop in orders in January 2026, according to official data released on Wednesday.

Corrected for price increases in real terms, the industry recorded 5.1% fewer orders compared to December 2025, according to the Federal Statistical Office.

Compared to January 2025, new orders decreased by 4.3% in real terms.

The main construction sector includes building and housing construction as well as civil engineering projects such as roads, railway lines and pipelines.

The Wiesbaden-based agency said the sector’s turnover was also down in January, falling 7.5% in real terms and 5.1% in nominal terms year-on-year.

“Unfortunately, the recovery in demand seen last year did not continue at the start of this year. Road construction, in particular, suffered another setback,” said Tim-Oliver Müller, managing director of the German Construction Industry Association, commenting on the figures.

“We expected that – after months of decline – the increase in orders observed in December would continue in January,” he added. “After all, politicians had made a number of promises, but as we can see today, the effects are unfortunately not materializing.”

The construction sector is hoping for a turnaround this year as billions of dollars in government spending, including on roads and railways, is expected to boost the economy.