Decline in orders and turnover – building construction particularly hard hit

The start of 2026 has been subdued for the German main construction sector. According to the Federal Statistical Office (Destatis), real order intake in January 2026 fell by 5.1% compared with the previous month, after adjustment for calendar and seasonal effects. This means the sector’s difficult situation is continuing.

Both building construction and civil engineering recorded declines: orders fell by 5.0% in building construction and by 5.1% in civil engineering. A negative trend is also evident in the less volatile three-month comparison. From November 2025 to January 2026, total order intake was 2.8% below the level of the previous three months. Whilst building construction recorded a significant drop of 5.8%, civil engineering stagnated.

Decline also year-on-year

Compared with the same month of the previous year, January 2025, real, calendar-adjusted order intake fell by 4.3%. Building construction remains particularly hard hit, with a decline of 6.9%, whilst civil engineering shows a more moderate fall of 2.0%. In nominal terms, the order volume was 3.9% below the previous year’s level.

This trend points to continued weak investment momentum – particularly in the building construction sector, which is more strongly influenced by interest rate trends, construction costs and demand in the residential and commercial segments.

Turnover slumps significantly

The slowdown is even more pronounced in terms of turnover: Real turnover in the main construction sector fell by 7.5% in January 2026 compared with the same month of the previous year. In nominal terms, this corresponds to a decline of 5.1% to around 5.4 billion euros.

The discrepancy between nominal and real trends illustrates that price and cost developments continue to play a central role, whilst at the same time actual construction output is declining noticeably.

Employment remains stable

Despite declining orders and turnover, the labour market in the main construction sector has so far remained robust. The number of employees rose slightly by 1.0% in January 2026 to around 537,000. This suggests that companies are continuing to try to maintain their capacity – possibly in anticipation of stabilisation in the medium term.

Structural challenges persist

The latest figures underscore the ongoing challenges facing the main construction sector. In addition to economic uncertainties, the industry is particularly burdened by high financing costs, volatile material prices and regulatory requirements.

These developments are of direct relevance to the security and building technology sector: investment in construction projects forms the basis for demand in areas such as access control, video surveillance and building management systems. A weakening construction sector therefore has a direct impact on upstream and downstream markets.

Conclusion

The significant decline in order intake and turnover in January 2026 signals a difficult start to the construction year. Whilst civil engineering shows a degree of stability, building construction remains the key risk factor. It will be crucial whether demand recovers as the year progresses – or whether structural pressures continue to dampen the construction sector.