Construction - October 2007

Seasonally adjusted total construction output at constant prices increased by 0.9% in October 2007, compared with September 2007. In comparison with October 2006, output at constant prices was up by 3.5%. The planning and building control authorities granted 11 217 building permits, which was by 18.6% less year-on-year. Approximate value of permitted constructions increased by 9.9% year-on-year and reached CZK 32.8 billion.  
Seasonally adjusted total construction output at constant prices grew by 0.9% month-on-month. The trend increased by 0.6% month-on-month (see Table 3).  
 
Total construction output at constant prices increased by 3.5% year-on-year, working days adjusted (WDA) total output grew by 2.0% (October 2007 had one working day more). Output increased in all observed types of constructions except for civil engineering and other work. The increase in construction output was mainly due to building construction where the most rapid growth was registered in new construction, modernisation and reconstruction, and especially new dwelling construction.
      
 
Contracted construction work carried out by construction enterprises with 20+ employees increased by 3.2% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 3.1% increase (contribution 2.6 percentage points), of which building construction grew by 9.0% (contribution 4.4 p.p.) and civil engineering works fell by 5.1% (contribution ‑1.8 p.p.). Repair and maintenance increased by 2.6% (contribution 0.3 p.p.). Other work recorded a fall of 45.5% (contribution ‑0.3 p.p.). Construction work abroad grew by 17.0% (contribution 0.6 p.p.).
 
The number of employees in construction enterprises with 20+ employees dropped by 2.2%*) against October 2006. The average monthly nominal wage of employees increased by 8.6% year-on-year and reached CZK 22 922 (the real wage rose by 4.4%). The average hourly wage grew by 5.5% year-on-year and stood at CZK 137. Labour productivity per employee increased by 5.5% and labour productivity per hour worked grew by 2.6%.
       
The planning and building control authorities granted 11 217**) building permits in October 2007 (of which 6 610 for new constructions and 4 607 for renewals and enhancements). Building permits granted fell by 18.6% year-on-year.
 
Approximate value of constructions permitted in October 2007 increased by 9.9% in comparison to October 2006 and reached CZK 32.8 billion. New construction is valued at CZK 22.6 billion (up by 13.8%, contribution 9.2 p.p.). Renewals and enhancements will make available constructions worth CZK 10.2 billion (up by 2.1%, contribution 0.7 p.p.). The increase in the approximate value of new construction is mostly caused by residential buildings (up by 28.6%, contribution 7.4 p.p.) and other constructions (up by 23.2%, contribution 2.3%). Approximate value of new non-residential buildings dropped by 1.9% (contribution -0.5 p.p.). Approximate value of renewals and enhancements of environmental constructions quintupled (contribution 4.1 p.p.). This increase was due to big financially demanding projects of reconstruction and modernisation of wastewater treatment plants.
 
The planning and building control authorities permitted the construction of 5 111dwellings, which was by 1 244 dwellings more (+32.2%) than in October 2006. Out of that, 4 488 dwellings (up by 1 211 dwellings) will be obtained by new construction and 623 dwellings (up by 33 dwellings) by renewals and enhancements. Approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 10.6 billion.
The planning and building control authorities permitted the construction of buildings with a floor space of 987.6 thousand m ² (+24.1%), of which floor space of residential buildings increased by 21.7% and of non-residential buildings grew by 26.9%. The average floor space of a newly constructed dwelling was 115.1 m ² and approximate value was CZK 20.5 thousand per m ².
According to Eurostat News Release, WDA construction output in the EU27 grew by 2.5% year-on-year in September 2007, of which building construction increased by 2.5% and civil engineering works by 2.4%. Among the EU member states for which data were available, the highest increases were observed in Romania (+37.5%), Slovenia (+4.6%) and Slovakia (+3.7%). The highest decreases were recorded in Sweden (-10.0%), Portugal (-4.7%) and Germany (-2.2%).

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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:       4 December 2007
End of data processing:    7 December 2007
Related publications:         /1-ep-8
8201-07 Construction
8202-07 Building Permits Granted
 
Data in Table 1 for August and September 2007 are revised; data for October are preliminary and will be updated with release for December 2007.
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.