Construction - May 2007

Seasonally adjusted total construction output at constant prices was down by 1,5% in May 2007, compared to April 2007. In comparison to May 2006, output at constant prices grew by 1.4%. The planning and building control authorities granted 10 203 building permits; it was by 18.2% less year-on-year. Approximate value of permitted constructions reached CZK 25.6 billion.  
Seasonally adjusted total construction output at constant prices dropped by 1,5% month-on-month. The trend decreased by 0.5% month-on-month (see Table 3).  
Year-on-year, total construction output at constant prices grew by 1.4%; SA growth was 5,0%. The slowdown of construction output varied. A considerably decelerating rate was recorded for civil engineering works (output down year-on-year), in particular due to the preparation and financing. A certain impact had a high comparable basis of May 2006. The growth of building construction work slowed down too, yet it retained the double-digit rate owing to the continuing intensive construction of business centres, logistic facilities and dwellings. The slowdown of construction output was also contributed to by deteriorated continuity of deliveries of basic building and insulating materials and by insufficient availability of certain kinds of skilled workers.
 
Contracted construction work carried out by construction enterprises with 20+ employees grew by 0.8% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 1.3% increase (contribution 1.1 percentage points), of which building construction grew by 14.4% (contribution 6.9 p.p.) and civil engineering works fell by 15.4% (contribution -5.8 p.p.). Repair and maintenance decreased by 11.3% (contribution -1.3 p.p.). Other construction work recorded a drop of 21.2% (contribution –0.1 p.p.). Construction work abroad grew by 40.9% (contribution 1.1 p.p.).
   
The number of employees in construction enterprises with 20+ employees dropped by 1.8%* ⁾ against May 2006. The average monthly nominal wage of employees increased by 9.2% year-on-year and reached CZK 22 559 (real wage rose by 6.6%). Average hourly wage grew by 12.6% year-on-year and stood at CZK 142. Labour productivity per employee increased by 2.7% and labour productivity per hour worked grew by 5.9%.
 
The planning and building control authorities granted 10 203** ⁾ building permits in May 2007 (of which 5 502 for new constructions and 4 701 for renewals and enhancements). The number of building permits granted fell by 18.2% year-on-year.
 
Approximate value of constructions permitted in May 2007 decreased by 50.5% year-on-year and reached CZK 25.6 billion. A drop in non-residential buildings and other constructions was affected by the high comparable basis (building permits with high approximate value for modernisation and reconstruction of the energy sector and for highway construction were granted in May 2006). New construction is valued at CZK 17.4 billion (down by 27.1%, contribution -12.5 p.p.). Renewals and enhancements will make available constructions worth CZK 8.2 billion (down by 70.4%, contribution -38.0 p.p.). Approximate value of building permits for residential buildings rose moderately in comparison to May 2006 (up by 0.2%, contribution -0.03 p.p.).
 
The planning and building control authorities permitted the construction of 3 535 dwellings, which was by 322 dwellings fewer (-8.3%) than in May 2006. Out of that, 2 914 dwellings will be obtained by new construction (down by 244 dwellings) and 621 dwellings by renewals and enhancements (down by 78 dwellings). The approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 7.7 billion.
The planning and building control authorities permitted also the construction of buildings with a floor space of 790.8 thousand m ² (+4.3%), of which floor space of residential buildings decreased by 9.4% and of non-residential buildings rose by 23.1%. The average floor space of a newly constructed dwelling was 124.4 m ² and approximate value CZK 20.0 thousand per m ².
According to Eurostat News Release, the WDA index of construction output in the EU27 grew by 6.6% y-o-y in April 2007, of which building construction by 6.0% and civil engineering works by 9.5%. Among the EU member states for which data were available, the highest increases were observed in Romania (+36.2%), Poland (+33.5%), Slovakia (+13.4%) and Germany (+0.2%). The highest decrease was recorded in Portugal (-3.6%). 

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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:       4 July 2007
End of data processing:    11 July 2007
Related publications:        /1-ep-8
8201-07 Construction
8202-07 Building Permits Granted
 
The data in Table 1 for March 2007 are final; data for April and May are preliminary and will be updated when data for July 2007 are released.
The data in Table 2 are final.

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*) Employment is measured 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 regulates, 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 numbers of building permits and corresponding approximate values for non-residential buildings, environmental constructions and other constructions.