Construction - 3. quarter of 2006

 

The growth of construction output continued in Q3 2006 and was higher year-on-year than in Q2 2006. The growth was driven by high demand in all segments of construction work. The high demand together with problems in completing construction works (shortage of specialised trades) resulted in a marked increase in the number of works under construction.
Construction output at constant prices was up by 7.4% in Q3 2006 and by 8.0% working days adjusted (Q3 2006 was by 1 working day shorter).

 
Development in individual segments of the construction market in Q3 2006 (enterprises with 20+ employees):
 
- new construction, reconstruction and modernization                                        +6.9%
- repair and maintenance                                                                              +10.9%
- buildings                                                                                                     +8.9%
- civil engineering works                                                                                  +5.4%    
- construction work done abroad                                                                          +36.3%  


Value of construction put in place
  The value of construction put in place grew by 8.7% in Q3 2006 compared to Q3 2005.


Employment
The average registered employment in construction enterprises with 20+ employees in Q3 2006 was 167 150 persons (-0.1% y-o-y), of which 108 146 were manually working persons (-2.5%).
 

Wages
The average monthly wage of employees in construction enterprises with 20+ employees reached CZK 20 655 (+7.8% y-o-y), the hourly wage was CZK 140 (+8.5%).


Labour productivity
Labour productivity was up by 7.3%, labour productivity per hour by 7.8% and unit wage costs grew by 0.5%, all year-on-year.
 
 
Building permits
The planning and building control authorities granted 38 727 building permits in Q3 2006 (-5.7% y-o-y). The approximate value of newly permitted constructions reached CZK 100.3 billion (+9.6% y–o–y).

 
Housing construction
In Q3 2006, the planning and building control authorities permitted 11 699 dwellings to be constructed. Out of that, 10 119 dwellings (-8.2% y-o-y) will be newly built; they are virtually those in residential buildings (9 991 dwellings). Construction of 1 580 dwellings (-16.5%) was permitted through renewals and enhancements. From the total number of newly permitted dwellings, 11 326 will be in residential buildings (-763 dwellings y-o-y) and 373 in non-residential buildings (-457 dwellings).  
The total approximate value of constructions in Q3 2006 was by 9.6% higher year-on-year. Approximate value grew most (by 16.2%) for non-residential buildings, by 11.0% for other constructions and by 5.2% for residential buildings. A fall of 2.2% was recorded for environmental constructions. The increase of 51.4% in the approximate value of building permits was predominantly attributable to new construction of non-residential buildings, where the planning and building control authorities permitted the implementation of large and expensive projects, especially of office buildings, warehouses, schools and industrial buildings, in comparison with Q3 2005.
 
The average acquisition value of a new dwelling in a new residential building was CZK 2.4 million, whereas a new dwelling obtained through renewal or enhancement cost CZK 1.4 million.
The planning and building control authorities permitted in Q3 2006 the construction of buildings with a floor space of 2 870.1 thousand m ², which was up by 27.1% year-on-year. Out of that, the floor space of new buildings was 2 731.8 thousand m ² (+29.9%), floor space obtained through renewals and enhancements was 138.3 thousand m ² (-10.5%).
New construction of residential buildings with an average floor space of 129.3 m ² (+9.3%) and approximate value of CZK 18.6 thousand per m ² (-1.1%) was permitted in Q3 2006.