Construction - 1. quarter of 2006

In Q1 2006, construction was affected by unfavourable weather conditions (subnormal temperatures, high snow cover).
Construction output at constant prices was up by 0.6% in Q1 2006. This figure shows that March 2006 compensated for losses in January (-1.2% at constant prices) and February (-8.2% at constant prices).
             
Individual segments of the construction market in Q1 2006:
 
- new construction, reconstruction and modernization                            -1.1 %
- repair and maintenance                                                                    +1.2 %
- building                                                                                           -0.2 %
- civil engineering                                                                               -2.2 %   
- output abroad                                                                                      +73.9 %  

Construction put in place
The value of construction put in place in Q1 2006 was up by 5.0% year-on-year.

Employment
Construction enterprises with 20+ employees employed 154.1 thousand persons (+1.4% y-o-y), of which manual workers made up 97.0 thousand (-0.3%).
 
Wages
The average monthly wage of employees in construction enterprises with 20+ employees reached CZK 18 041 (+7.5% y-o-y), the hourly wage was CZK 132 (+5.1%).
 
Labour productivity
Labour productivity was down by 1.6%, labour productivity per hour fell by 3.8%, and unit wage costs were up by 9.2%, all year-on-year.
 
      
Analysis of construction put in place, construction work of contractors and subcontractors
The results of a survey in enterprises with 20+ employees say that the volume of subcontracting by contractors is on the increase year-on-year. We assume that large construction enterprises do not expand by increasing volumes of construction orders (employees, machinery and equipment, etc.), but they achieve their increase in construction work by subcontracting to other construction companies.
Subcontracts to other companies in the field of construction put in place grow slower than subcontracts to companies in other fields.
 
Building permits
The planning and building control authorities granted 25 349 building permits in Q1 2006 (-7.1% y-o-y). The approximate value of newly permitted constructions reached CZK 64.9 billion (-10.9% y-o-y).Housing construction
There were 9 117 dwellings permitted for construction by the planning and building control authorities in Q1 2006, which was up by 3.5% year–on–year. Out of that, new construction should provide 7 246 dwellings (+8.3%), predominantly in residential buildings (7 205 dwellings). A total of 1 871 dwellings should be obtained through renewals and enhancements (-11.7%). From the total of newly permitted dwellings, 8 631 will be built in residential buildings (+407 dwellings) and 486 in non-residential buildings (-99 dwellings).
The total approximate value of constructions in Q1 2006 was by 11.1% lower year-on-year. A fall of 26.3% was recorded for other constructions. On the other hand, the approximate value of newly permitted dwellings in residential buildings was up by 9.5% year-on-year.
The average acquisition value of a new dwelling in a new residential building stood at CZK 2.2 million, whereas a new dwelling obtained through renewal or enhancement cost CZK 1.3 million.
 
In Q1 2006 the planning and building control authorities permitted construction of buildings with a floor space of 1 834 123 m ², which was up 13.7% year-on-year. Out of that, the floor space of new constructions was 1 677 348 m ² (+16.4%, contribution 14.7 percentage points to the total increase), floor space of dwellings obtained through renewals and enhancements 156 775 m ² (-8.9%, contribution -1.0 percentage points).
For the new construction of residential buildings, average floor space 106.9 m ² (-10.1%) was permitted in Q1 2006; the approximate value per m ² was CZK 20.7 thousand (+15%).