Construction - May 2008

In May 2008 seasonally adjusted total construction output at constant prices increased by 0.2%, compared with the previous month. In comparison to May 2007, output at constant prices fell by 2.9%. The planning and building control authorities granted 11 379 building permits, i.e. by 11.5% more year-on-year. Approximate value of permitted constructions grew by 35.9% year-on-year and reached CZK 34.8 billion.


Seasonally adjusted total construction output at constant prices increased by 0.2% month-on-month. The trend increased by 0.1% month-on-month (see Table 3).






Total construction output at constant prices fell by 2.9% year-on-year, working days adjusted (WDA) total output dropped by 1.5% (May 2008 was by one working day shorter). One of the reasons for the decrease seems to have been the public holidays on the 1st and 8th May 2008 falling on Thursdays, which caused many people to take leave on the following Fridays as proved by the statistics of hours worked. Like in the previous months, growth was recorded in civil engineering, in the areas of new construction, reconstruction and modernisation as well as repair and maintenance. Building construction continues decreasing year-on-year. Sustaining growth is registered for construction work abroad.

Contracted construction work carried out by construction enterprises with 20+ employees decreased by 3.2% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 5.8% drop (contribution -5.0 percentage points), of which building construction fell by 10.4% (contribution -5.7 p.p.) and civil engineering rose by 2.2% (contribution 0.7 p.p.). Construction work abroad recorded a 39.8% increase (contribution 1.3 p.p.). Increases were observed in repair and maintenance (by 3.6%, contribution 0.4 p.p.) and other work (by 13.0%, contribution 0.1 p.p.).

The number of employees in construction enterprises with 20+ employees dropped by 1.3% ^{* )} against May 2007. The average monthly nominal wage of employees increased by 7.9% year-on-year and reached CZK 24 335 (the real wage increased by 1.0%). The average hourly wage grew by 14.8% year-on-year and stood at CZK 163. Labour productivity per employee decreased by 1.9% and labour productivity per hour worked grew by 4.3%.

The planning and building control authorities granted 11 379 building permits in May 2008 (of which 6 542 for new constructions and 4 837 for renewals and enhancements). Building permits granted grew by 11.5% year-on-year.

Approximate value of constructions permitted in May 2008 increased by 35.9% in comparison to May 2007 and reached CZK 34.8 billion. New construction is valued at CZK 24.3 billion (up by 39.9%, contribution 27.1 p.p.). Renewals and enhancements will make available constructions worth CZK 10.5 billion (up by 27.5%, contribution 8.8 p.p.).
Compared to May 2007, approximate value of new construction grew in all types of constructions; environmental constructions increased by 71.1% (contribution 3.7 p.p.), other constructions by 60.3% (contribution 7.1%), non-residential buildings by 38.6% (contribution 8.8 p.p.) and residential buildings by 26.7% (contribution 7.5 p.p.).
Other constructions tripled year-on-year (contribution 8.5 p.p.) and contributed most to the total increase of approximate value of renewals and enhancements. They were represented by financially demanding repair, reconstruction and modernisation of roads and bridges.
The planning and building control authorities permitted the construction of 4 277 dwellings, which was by 742 dwellings more (+21.0%) than in May 2007. Out of that, 3 568 dwellings (up by 654 dwellings) will be obtained by new construction and 709 dwellings (up by 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 846.7 thousand m ² (+7.1%), of which floor space of residential buildings increased by 21.3% (contribution 10.8 p.p.) and of non-residential buildings fell by 7.5% (contribution -3.7 p.p.). The average floor space of a newly constructed dwelling was 121.2 m ² and the approximate value was CZK 21.1 thousand per m ².
According to Eurostat News Release, WDA construction output in the EU27 was down by 0.3% year-on-year in April 2008; building construction grew by 0.4% and civil engineering fell by 3.5%. Among the EU member states for which data were available the highest increases were observed in Romania (+30.0%), Poland (+22.8%) and Slovakia (+13.5%). The highest decrease was registered in Spain (-21.8%). Germany reported a fall of 2.3%.

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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: 3 July 2008
End of data processing: 8 July 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 March 2008 are final; data for April and May 2008 are preliminary and will be updated with the data release for July 2008.
The 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.