Construction - March 2008

 
In March 2008 seasonally adjusted total construction output at constant prices was down by 1.1%, compared with February 2008. In comparison to March 2007, output at constant prices grew by 0.8%. The planning and building control authorities granted 9 833 building permits, i.e. by 4.1% more year-on-year. Approximate value of permitted constructions decreased by 8.4% year-on-year and reached CZK 33.2 billion.Seasonally adjusted total construction output at constant prices fell by 1.1% month-on-month. The trend increased by 0.3% month-on-month (see Table 3).
 
Total construction output at constant prices increased by 0.8% year-on-year, working days adjusted (WDA) total output grew by 3.8% (March 2008 was by two working days shorter). Like in February 2008, civil engineering recorded year-on-year growth of construction output in new construction, reconstruction and modernisation, and in repair and maintenance as well. This was due to financially demanding construction of roads, highways and railways including their reconstruction and modernisation. In comparison to March 2007 civil engineering output decreased. Construction work abroad recorded a year-on-year increase.
     
Contracted construction work carried out by construction enterprises with 20+ employees increased by 0.4% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 0.2% increase (contribution 0.1 percentage points), of which building construction fell by 3.0% (contribution -1.9 p.p.) and civil engineering rose by 8.0% (contribution 2.0 p.p.). Construction work abroad recorded a 13.2 increase (contribution 0.6 p.p.). Decreases were registered for repair and maintenance (by 3.5%, contribution -0.3 p.p.) and other work (by 4.5%, contribution -0.0 p.p.).
 
The number of employees in construction enterprises with 20+ employees dropped by 0.1% ^*) against March 2007. The average monthly nominal wage of employees increased by 13.0% year-on-year and reached CZK 26 020 (real wage increased by 5.5%). The average hourly wage grew by 20.0% year-on-year and stood at CZK 181. Labour productivity per employee increased by 0.5% and labour productivity per hour worked grew by 6.8%.
 
The planning and building control authorities granted 9 833 ^**) building permits in March 2008 (of which 5 479 for new constructions and 4 354 for renewals and enhancements). Building permits granted grew by 4.1% year-on-year.
       
Approximate value of constructions permitted in March 2008 decreased by 8.4% in comparison to March 2007 and reached CZK 33.2 billion. New construction is valued at CZK 20.6 billion (down by 26.1%, contribution -20.2 p.p.). Renewals and enhancements will make available constructions worth CZK 12.6 billion (up by 51.6%, contribution 11.8 p.p.).
Compared to March 2007, approximate value of new construction fell in all types of constructions, except other constructions (up by 24.0%, contribution 4.3 p.p.). Approximate value of renewals and enhancements grew five times in other constructions (contribution 12.4 p.p.) and increased by 12.3% (contribution 0.8 p.p.) in residential buildings. The growth of approximate value in other constructions resulted from new construction and modernisation of roads, highways and railways.
 
The planning and building control authorities permitted the construction of 2 825 dwellings, which was by 784 dwellings fewer (-21.7%) than in March 2007. Out of that, 2 337 dwellings (down by 683 dwellings) will be obtained by new construction and 488 dwellings (down by 101 dwellings) by renewals and enhancements. The approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 6.3 billion. The planning and building control authorities permitted the construction of buildings with a floor space of 689.8 thousand m ² (+3.8%), of which floor space of residential buildings decreased by 16.4% (contribution -10.0 p.p.) and of non-residential buildings grew by 35.6% (contribution 13.8 p.p.). The average floor space of a newly constructed dwelling was 134.0 m ² and the approximate value was CZK 18.8 thousand per m ².
According to Eurostat News Release, WDA construction output in the EU27 increased by 5.0% year-on-year in February 2008, of which building construction grew by 4.3% and civil engineering by 6.7%. Among the EU member states for which data were available, the highest increases were observed in Slovenia (+41.6%), Poland (+18.6%), Slovakia (+12.0%) and Germany (+11.3%). The only decrease was registered in Spain (‑5.6%).

Analysis - Analysis of the construction sector in the first quarter of 2008

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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 May 2008
End of data processing:    9 May 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 January and February 2008 underwent a one-off revision. The data for March 2008 are preliminary.
The data in Table 2 are final.

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*) 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.