A study by the German Construction Industry Federation (HDB) forecasts a 4% contraction in Germany’s construction sector this year, slightly worse than earlier estimates of 3.5%. This decline, attributed to weak residential construction and underperforming public works, is expected to result in around 10,000 job losses. Rising interest rates, increased inflation, and economic stagnation further contribute to the sector’s challenges. However, commercial construction shows promise, with anticipated sales growth of 1.5%, driven by major contracts from entities like Deutsche Bahn and local transport operators.