Construction - January 2008

In January 2008 seasonally adjusted total construction output was by 0.5% down at constant prices compared with December 2007. In the year-on-year comparison it increased by 1.0% at constant prices. The planning and building control authorities granted 7 888 building permits; which was by 6.2% less, year-on-year. Approximate value of permitted constructions reached CZK 28.4 billion and increased by 43.7%, year-on-year.
In January seasonally adjusted total construction output was 0.5% down, month-on-month, at constant prices . The trend increased by 0.3% (see Table 3).

In January total construction output increased by 1.0%, year-on-year, at constant prices. For domestic construction output a moderate decrease was recorded, year-on-year, in all types of constructions. Construction work abroad grew two times, year-on-year. The year-on-year deceleration of domestic construction output could be assumed due to unusually high comparison basis in January 2007 when the growth of construction output by 29.1% was recorded owed mainly to favourable climatic conditions.

Contracted construction work carried out by construction enterprises with 20+ employees increased by 0.8%, year-on-year, at constant prices. New construction, reconstruction and modernisation dropped by 1.3% (contribution –1.1 percentage point), of which building construction decreased by 1.0% (contribution -0.6 p.p.) and civil engineering works dropped by 2.1 % (contribution –0.5 p.p.). Repair and maintenance decreased by 2.4 % (contribution –0.2 p.p.). Other work recorded a fall of 9.7 % (contribution -0.1 p.p.). Construction work abroad grew two times, year-on-year (contribution 2.2 p.p.).

The number of employees in construction enterprises with 20+ employees increased by 1.0 %*) against January 2007. The average nominal wage of employees increased by 12.3%, year-on-year, and reached CZK 21 837 (the real wage increased by 4.5 %). Higher growth came from the payment of remuneration and bonuses. The average hourly wage grew by 13.3% against the corresponding period in 2007 and stood at CZK 155. Labour productivity per employee decreased by 0.2% and labour productivity per hour worked grew by 0.7%.

The planning and building control authorities granted 7 888**) building permits in January 2008 (of which 4 445 for new constructions and 3 443 for renewals and enhancements). Building permits fell by 6.2%, year-on-year.

Approximate value of constructions permitted in January 2008 increased by 43.7% in comparison to January 2007 and reached CZK 28.4 billion. New construction is valued at CZK 18.2 billion (up by 39.4%, contribution 26.1 p.p.). Renewals and enhancements will make available constructions worth CZK 10.2 billion (up by 52.1%, contribution 17.6 p.p.).
The increase in the approximate value of new construction was differentiated; construction of non-residential buildings grew more than three times (contribution 23.4 p.p.) due mainly to the low y-o-y comparative basis. The increase of the approximate value came also from new construction of residential buildings (growth by 21.2%, contribution 5.7 p.p.).
Approximate value of renewals and enhancements in other constructions grew two times for non-residential buildings (contribution 12.8 p.p.) Approximate value of other constructions rose as well (growth by 71.3%, contribution 7.0 p.p.); especially financially demanding repair, reconstruction and modernisation of transport and railway infrastructures.

The planning and building control authorities permitted the construction of 3 381 dwellings, which was by 794 dwellings more (+30.7%) than in January 2007. Out of that, 3 001 dwellings (more by 978 dwellings) will be obtained by new construction and 380 dwellings (down by 184 dwellings) by renewals and enhancements. The approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 6.8 billion. The planning and building control authorities permitted also the construction of buildings with a floor space of 764.4 thousand m ² (+43.6%), of which floor space of residential buildings increased by 6.4% (contribution 3.7 p.p.) and of non-residential buildings increased by 95.8% (contribution 39.9 p.p.). The average floor space of a newly constructed dwelling was 102.9 m ² and the approximate value was CZK 21.0 thousand per m ².
According to Eurostat News Release, WDA construction output in the EU27 decreased by 4.0% year-on-year in December 2007, of which building construction dropped by 4.1% and civil engineering by 6.3%. Among the EU member states for which data were available, the highest increases were observed in Romania (+30.9%). In Poland the increase was 12.6% and in Slovakia 0.1%. The largest decreases were recorded in the UK (-12.7%), Slovenia (-8.3%) and Germany (-6.3%).

---

Note
Contact: Vladimir Zikmund, phone (+420) 274054252, e-mail: vladimir.zikmund@csu.gov.cz
Data source: CZSO direct survey in enterprises with 20+ employees and in planning and building control authorities
End of data collection: 5 March 2008
End of data processing: 10 March 2008
Related publications: /1-ep-8
8201-07 Construction
8202-07 Building Permits Granted

Data in Table 1 for November 2007 are revised; data for December and the year 2007 are final. Data for January 2008 are preliminary and will be updated with release for April 2008.
Data in Table 2 are final.

*) Employment indicators are observed in construction enterprises with 20+ employees. The average registered number of employees does not include agency workers.
**) On 1 January 2007, a new Act No. 183/2006 Sb., on Territorial Planning and Building Code (the Building Act), was brought in. It newly resolves, especially in Sections 103 and 104, the problem of “granting building permits”. This new Act may have an impact on absolute values in time series covering new construction and renewals and enhancements, particularly the numbers of building permits and corresponding approximate values for non-residential buildings, environmental constructions and other constructions.