Construction - March 2007

 
Seasonally adjusted total construction output at constant prices was up by 1.4% in March 2007 compared to February 2007. In comparison to March 2006, output at constant prices grew by 26.4%. The planning and building control authorities granted 9 449 building permits, which was by 3.6% more year-on-year. Approximate value of permitted constructions reached CZK 36.2 billion and increased by 76.3% year-on-year. 
Seasonally adjusted total construction output at constant prices grew by 1.4% month-on-month. The trend rose by 2.5% month-on-month (see Table 3).

Year-on-year, total construction output at constant prices grew by 26.4%; WDA growth was 28.3% (March 2007 was by one working day shorter) and SA growth 23.9%.  Compared to March 2006, volumes of construction work increased in all decisive types of constructions. Total construction output is on the double-digit increase for the fourth successive month. A high rate of growth was recorded especially for building construction. The very favourable weather conditions (the mean temperature in March 2007 was by 4.9°C higher year-on-year) enabled the builders to perform all kinds of construction work. 

Contracted construction work carried out by construction enterprises with 20+ employees grew by 25.9% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 26.7% increase (contribution 22.7 percentage points), of which building construction grew by 32.7% (contribution 19.0 p.p.) and civil engineering by 13.8% (contribution 3.7 p.p.). Repair and maintenance increased by 10.8% (contribution 1.1 p.p.). Other construction work recorded a drop of 13.8% (contribution –0.1 p.p.). Construction work abroad rose by 54.7% year-on-year (contribution 2.2 p.p.).
 
Employment in construction enterprises with 20+ employees grew by 0.6% ^*) against March 2006. The average monthly nominal wage of employees increased by 11.0% year-on-year and reached CZK 23 063 (real wage rose by 8.9%). The average hourly wage grew by 12.1% year-on-year and stood at CZK 151. Labour productivity per employee increased by 25.1% and labour productivity per hour worked grew by 26.3%.
 
The planning and building control authorities granted 9 449 ^**) building permits in March 2007 (of which 5 157 for new constructions and 4 292 for renewals and enhancements). The number of building permits granted rose by 3.6% year-on-year.
 
The approximate value of constructions permitted in March 2007 increased by 76.3% year-on-year and reached CZK 36.2 billion. New construction valued at CZK 27.9 billion more than doubled in comparison to March 2006 (contribution 71.6 p.p.). Renewals and enhancements will make available constructions worth CZK 8.3 billion (up by 13.1%, contribution 4.7 p.p.). A more than quadruple rise in the approximate value of building permits was recorded for new construction of non-residential buildings (contribution 49.7 p.p.). The approximate value of other constructions grew roughly twice and half times (contribution 18.4 p.p.). In non-residential buildings it was mainly due to building permits for financially demanding projects of new industrial buildings including technology and in other constructions due to continuing construction of highways and roads. A year-on-year decrease in the approximate value of building permits was registered only for environmental constructions (down by 32.3%, contribution -4.1 p.p.).

The planning and building control authorities permitted the construction of 3 609 dwellings, which was by 840 dwellings more (+30.3%) than in March 2006. Out of that, 3 020 dwellings will be obtained by new construction (up by 845 dwellings) and 589 dwellings by renewals and enhancements (down by 5 dwellings). The approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 7.3 billion.     
The planning and building control authorities permitted also the construction of buildings with a floor space of 664.7 thousand m ² (+3.0%), of which residential buildings increased by 44.0% and non-residential buildings decreased by 28.9%. The average floor space of a newly constructed dwelling was 124.3 m ² and approximate value CZK 18.4 thousand per m ².
According to data released by Eurostat, the y-o-y production index for construction in the EU27 grew by 9.2% (working days adjusted) in February 2007, of which building construction by 8.1% and civil engineering works by 10.2%. Among the EU member states for which data were available, the highest increases were observed in Poland (+57.1%), Slovenia (+31.0%), Germany (+30.7%) and Slovakia (+25.6%). A decrease was recorded in Portugal (-6.6%).

Analysis - Analysis of construction in the first quarter of 2007

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Note
Contact:                                Vladimír Zikmund, phone (+420) 274054252, e-mail: vladimir.zikmund@csu.gov.cz
Data source:                        CZSO direct survey in enterprises with 20+ employees and planning and building control authorities
End of data collection:       7 May 2007
End of data processing:    11 May 2007
Related publications:        /1-ep-8
8201-07 Construction
8202-07 Building Permits Granted

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