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Construction - August 2011

Marked decline in the production of civil engineering construction

Publication Date: 07. 10. 2011

Product Code: r-8202-11




In August 2011 the construction output dropped by 7.7%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was at the level of the previous month. The planning and building control authorities granted by 3.0% less building permits, y-o-y, and the approximate value of permitted constructions plummeted by 42.6%, y-o-y. The number of started dwellings was down by 17.0%, y-o-y, and the number of completed dwellings increased by 24.3%, y-o-y.

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In August 2011 the construction output decreased by 7.7%, y-o-y, in real terms; if seasonally adjusted it dropped by 8.9%. August 2011 was by one working day longer compared to the same month of the previous year. The construction output in August 2011, seasonally adjusted was at the level of the previous month. The production in building construction fell by 1.8% (contribution
-1.2 percentage points (p.p.)), y-o-y, and the production of civil engineering construction dropped by 18.5% (contribution -6.5 p.p.), y-o-y. Compared to the same period of 2008, the year of boom, the construction output declined by 16.1% since the beginning of 2011 till the end of August 2011.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 6.9%, y-o-y, in August 2011. Their average monthly nominal wage increased by 9.3%, y-o-y, and reached CZK 29 401. The nominal wage increase was affected by the payment of extraordinary bonuses in certain companies.

In August 2011 the number of building permits granted was down by 3.0%, y-o-y; the planning and building control authorities granted 9 781 building permits. The approximate value of the permitted constructions attained CZK 23.0 billion and plummeted by 42.6% compared to the same period of 2010. The value of the constructions permitted declined in almost all types of construction, yet namely in new construction work.

The number of dwellings started in August 2011 fell by 17.0%, y-o-y, and attained the number of 2 320 dwellings. The number of dwellings started in family houses dropped by 11.3%, year-on-year. The number of dwellings started in multi-dwelling buildings plummeted by 42.8%.

The number of completed dwellings grew by 24.3%, y-o-y, in August 2011 and was 2 736 dwellings. The number of completed dwellings in family houses increased by 14.6%. The number of completed dwellings in multi-dwelling buildings jumped up by 79.6%, yet this rapid increase was, in part, caused by a low comparison basis of August 2010 when the number of these dwellings plummeted by over 50%, y-o-y.

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According to Eurostat the WDA (working days adjusted) construction output in the EU27 increased by 0.2%, y-o-y, in July 2011. Building construction decreased by 0.7% and civil engineering construction increased by 2.6%. Eurostat shall release the data for August 2011 on 19 October 2011 (at 11:00 a.m.).




Methodological Note:
Responsible head: Radek Matějka, phone: (+420) 27405289 4, e-mail: radek.matejka@csu.gov.cz
Contact person: Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@csu.gov.cz
Method of data acquisition: direct surveys Stav 1-12 and Stav 2-12 of the CZSO
End of data collection: 3 October 2011
Specific methodological notes: *The registered number of employees indicator does not include: persons working under various contracts for work, working owners of enterprises and cooperating household members, who do not have an employment contract. Data on the registered number of employees in construction also exclude agency workers, who have an employment contract, however, in other activity than construction.
Following publications: time series in Construction /produkty/sta_ts , and Housing construction, Building permits, and Construction orders /produkty/bvz_ts
Date of the next News Release publication: 7 November 2011



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