Germany's housebuilding sector is facing a 'confidence crisis' as the economy struggles, according to CEO Dominik von Achten of German building materials company Heidelberg Materials. The sector has been deteriorating in recent months, with economic indicators hitting all-time lows. The current sentiment and expectations for the German residential construction sector fell to all-time lows in January. The construction PMI survey for Germany also fell to the lowest ever reading. German Economy and Climate Minister Robert Habeck announced that the government is slashing its 2024 gross domestic product growth expectations due to higher interest rates. However, there is some hope for the sector, as the amount of companies reporting order cancellations and a lack of orders has eased slightly. Von Achten suggested that there could be relief on the horizon if inflation decreases and the European Central Bank decreases interest rates. The exact timeline for rate cuts remains unclear, but markets are pricing in the first decrease to take place in June [15f25e03].