Construction - July 2008

In July 2008 seasonally adjusted total construction output at constant prices was up by 1.1%, compared with the previous month. In comparison to July 2007, output at constant prices grew by 6.9%. The planning and building control authorities granted 11 055 building permits, i.e. by 13.5% more year-on-year. Approximate value of permitted constructions increased by 16.2% year-on-year and reached CZK 35.0 billion.
Seasonally adjusted total construction output at constant prices increased by 1.1% month-on-month. The trend increased by 0.4% month-on-month (see Table 3).    
Total construction output at constant prices grew by 6.9% year-on-year, working days adjusted (WDA) total output rose by 1.8% (July 2008 had three working days more). The highest growth was recorded in civil engineering, in the areas of new construction, reconstruction and modernisation as well as repair and maintenance. Civil engineering is the target segment for most resources from the EU structural funds going to the construction industry.
           
Contracted construction work carried out by construction enterprises with 20+ employees increased by 7.7% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 6.4% increase (contribution 5.4 percentage points); building construction fell by 3.3% (contribution -1.8 p.p.) and civil engineering grew by 23.0% (contribution 7.2 p.p.). Construction work abroad recorded a growth (+18.7%, contribution 0.8 p.p.). Increases were registered for repair and maintenance (+13.1%, contribution 1.4 p.p.) and other work (+23.0%, contribution 0.1 p.p.).
 
The number of employees in construction enterprises with 20+ employees dropped by 1.2% *) against July 2007. The average monthly nominal wage of employees increased by 15.5% year-on-year and reached CZK 25 646 (real wage increased by 8.0%). The average hourly wage grew by 4.4% year-on-year and stood at CZK 164. Labour productivity per employee rose by 9.0% and labour productivity per hour worked decreased by 1.5%. Hours worked grew by 9.3% due to a higher number of working days.
       
The planning and building control authorities granted 11 055 building permits (+13.5% on July 2007), of which 6 463 (+22.9%) for new constructions and 4 592 (+2.5%) for renewals and enhancements.
 
Approximate value of permitted constructions grew by 16.2% in comparison to July 2007 and reached CZK 35.0 billion. New construction is valued at CZK 24.2 billion (+19.0%, contribution 12.8 p.p.). Renewals and enhancements will make available constructions worth CZK 10.8 billion (+10.4%, contribution 3.4 p.p.).
Compared to July 2007, approximate value of new construction grew in other constructions (+77.2%, contribution 11.9 p.p.), residential buildings (+28.1%, contribution 6.7%) and environmental constructions (+72.0%, contribution 2.8 p.p.). A decrease was recorded in non-residential buildings (‑35.5%, contribution -8.6 p.p.). The increase in other constructions was due to financially demanding projects of transport infrastructure. The high growth in environmental constructions was affected by the very low comparative basis of July 2007. As for renewals and enhancements, the only increase was registered in non-residential buildings (+62.5%, contribution 5.3 p.p.). Approximate value decreased in all the other types of constructions.
 
The planning and building control authorities permitted the construction of 4 117 dwellings, which was by 634 dwellings more (+18.2%) than in July 2007. Out of that, 3 680 dwellings (+722 dwellings) will be obtained by new construction and 437 dwellings (-88 dwellings) by renewals and enhancements. Approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 9.7 billion. The planning and building control authorities permitted the construction of buildings with a floor space of 874.5 thousand m ² (-5.5%); floor space of residential buildings increased by 18.2% (contribution 8.2 p.p.) and of non-residential buildings dropped by 25.1% (contribution -13.8 p.p.). The average floor space of a newly constructed dwelling was 126.4 m ² and the approximate value was CZK 20.0 thousand per m ².
 According to Eurostat News Release, WDA construction output in the EU27 was down by 1.8% year-on-year in June 2008; building construction decreased by 2.1% and civil engineering dropped by 1.4%. Among the EU member states for which data were available, the highest increases were recorded in Poland (+20.8%), Slovenia (+14.9%), Romania (+12.7%), Slovakia (+7.9%) and Germany (+0.1%). The highest decrease was registered in Spain (‑15.9%).
 

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Notes
Contact: Irena Licková, phone (+420)274052871, e-mail : irena.lickova@csu.gov.cz
Data source: CZSO direct survey in enterprises with 20+ employees and in planning and building control authorities
End of data collection:       3 September 2008
End of data processing:    8 September 2008
Related publications:         /1-ep-8
8201-08 Construction in the Czech Republic
8202-08 Building Notices Received and Building Permits Granted
 
The data in Table 1 for May and June 2008 are final; data for July are preliminary and will be updated together with the release for October 2008.
The data in Table 2 are final.

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*) Employment indicators are observed for construction enterprises with 20+ employees. The average registered number of employees does not include agency workers.