Analysis of the development of construction - 1. quarter of 2004
Publication Date: 10. 05. 2004
Product Code: e-8216-04
Analysis of the development of construction
in the 1st quarter of 2004
in the 1st quarter of 2004
In the 1st quarter of 2004, the construction was growing at an unusually high rate – it increased its output by 16.2% year-on-year, one day being worked more. This fast growth of construction output volumes began in June 2003 and was influenced by the following in particular:
- expansion of new developer’s projects, primarily commercial and administrative ones;
- concurrency of work completed on many large constructions of transport infrastructure and trade centres and on constructions for foreign investors;
- increased extent of housing construction work, especially in implementing housing complexes in a developer’s way.
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The growth of construction output was undoubtedly affected by the transfer of VAT on construction work (except for housing construction) from 5% category to 19% one (approved in April 2004).
Construction output
1st quarter growth in the individual segments of the construction market:
- repair and maintenance -7.3%
- new construction, reconstruction and modernisation +17.8%
- civil engineering +8.7%
- building +17.1%
Size of enterprises by number of employees | Structure by construction work volume, % | Index, % |
| up to and incl. 19 | 36.8 | 116.6 |
| 20 to 99 | 24.7 | 108.0 |
| 100 to 199 | 7.5 | 114.3 |
| 200 to 299 | 4.8 | 119.3 |
| 300 to 399 | 3.5 | 136.1 |
| 400 to 499 | 1.2 | 108.9 |
| 500 and over | 21.5 | 108.9 |
Employment
The 1st quarter 2004 employment in the construction industry was by 3.2% down year-on-year (LFSS). While the number of self-employed persons was by 4.3% up, that of employees dropped by 7.5%. Construction enterprises with 20+ employees in the first quarter of 2004 employed 148.1 thousand persons (+2.5% year-on-year) of which manual employees accounted for 95.1 thousand (+1.8%).
Wages
Average nominal monthly wage in enterprises with 20+ employees stood at CZK 16 258 (+8.5% on the corresponding period of 2003) and hourly wage reached CZK 117 (+3.6%). In the first quarter of 2004, the employees of construction enterprise worked 19 hours more on average than in the first quarter of 2003.
- The highest average wage was paid in enterprises with 1 000+ employees.
- The average wage of non-manual workers was by 8.4% up and of non-manual workers by 8.1% up year-on-year.
Labour productivity
Labour productivity in enterprises with 20+ employees was by 13.2% higher (constant prices) in the 1st quarter of 2004 than in the 1st quarter of 2003. Hourly labour productivity rose by 8.0%. A considerable increase in labour productivity was recorded for large construction enterprises with 500+ employees. Unit labour costs dropped by 4.0%.
Building permits
Planning and building control authorities granted 29 258 building permits in the 1st quarter of 2004, by 17.2% more than in the 1st quarter of 2003. The approximate value of the constructions permitted was CZK 62.9 billion (+1.0%) of which:
- residential buildings CZK 18.2 billion, by 5.8% more
- non-residential buildings CZK 1.3 billion, by 41.5% less, and
- other constructions (incl. environmental ones) 27.4 billion, by 78.5% more.
The higher volumes of the approximate values of residential buildings were influenced by the favourable situation in the mortgage-credit and saving-in-building-society markets, while the higher volumes of the approximate values of the other constructions were due to permits granted for large transport infrastructure constructions.
Housing construction
In the first quarter of 2004, planning and building control authorities permitted 8 660 dwellings for construction (6 328 from new construction and 2 332 from renewals and enhancements), which is by 5.0% up on the first quarter of 2003. The approximate value of the newly permitted dwellings in residential buildings reached CZK 14.9 billion, which is by 5.2% more than in the corresponding quarter of 2003. Of the total number of dwellings permitted for construction, 7 557 will be built in residential buildings and 1 103 in non-residential ones. As to the construction in residential buildings themselves, 6 193 dwellings will be obtained from new construction and 1 364 from renewals and enhancements.
