German residential building permits rise 31% January-May
The total number of German residential building permits soared by 31% to approximately 148,000 for the first five months of 2016, according to Friday’s data. It feels like the data will keep backing economic growth this year.
With borrowing costs at record minimums, Germans are currently flocking to property. Apart from that, higher state spending on social housing to accommodate a massive influx of migrants, is also giving the construction sector an extra push.
The rapidly growing construction sector currently appears to be one of the major growth drivers in the EU’s number one economy. During the first three months of 2016, construction investment appeared to be one of the greatest growth contributors, and this can’t be said about slumping foreign trade gains.
However, recent data has demonstrated that building activity decreased in April and May. This could be explained by the mild winter, pulling construction work forward.