Construction - October 2008

In October 2008 seasonally adjusted total construction output at constant prices was down by 0.5%, compared with the previous month. In comparison to October 2007, construction output at constant prices decreased by 1.1%. The planning and building control authorities granted 10 840 building permits, i.e. by 3.4% less year-on-year. Approximate value of permitted constructions increased by 7.1% year-on-year and reached CZK 35.1 billion.
Seasonally adjusted total construction output at constant prices decreased by 0.5% month-on-month. The trend rose by 0.4% month-on-month (see Table 3). 
Total construction output at constant prices dropped by 1.1% year-on-year, working days adjusted (WDA) construction output rose by 0.4% (October 2008 was by one working days shorter than October 2007). Construction output was still affected by civil engineering, namely new financially demanding projects of transport infrastructure, including its repair and maintenance. The decrease in building construction continued, both in new construction and in repair and maintenance.
           
Contracted construction work carried out by construction enterprises with 20+ employees decreased by 1.9% year-on-year at constant prices. New construction, reconstruction and modernisation dropped by 2.8% (contribution -2.3 percentage points); building construction fell by 12.1% (contribution -6.1 p.p.) and civil engineering grew by 11.9% (contribution 3.8 p.p.). Repair and maintenance increased by 5.8% (contribution 0.7 p.p.) and other work grew by 37.1% (contribution 0.1 p.p.). Construction work abroad decreased by 9.3% (contribution -0.4 p.p.).
 
The number of employees in construction enterprises with 20+ employees dropped by 0.5%*) against October 2007. The average monthly nominal wage of employees increased by 9.3% year-on-year and reached CZK 25 066 (real wage grew by 3.1%). The average hourly wage grew by 13.8% year-on-year and stood at CZK 156. Labour productivity per employee decreased by 1.4% and labour productivity per hour worked rose by 2.7%. Hours worked dropped by 4.4% due to a lower number of working days.
       
The planning and building control authorities granted 10 840 building permits (-3.4%); 6 270 were for new constructions and 4 570 for renewals and enhancements. Compared to October 2007, building permits for new constructions grew in non-residential buildings (+0.9%). Decreases were recorded in environmental constructions (-10.0%), other constructions (-5.9%) and residential buildings (-2.4%). Building permits for renewals and enhancements grew most in other constructions (+22.6%), decreases were observed in residential buildings (-8.0%), environmental constructions (-4.8%) and non-residential buildings (-1.0%)
 
Approximate value of permitted constructions grew by 7.1% in comparison to October 2007 and reached CZK 35.1 billion. New constructions are valued at CZK 24.0 billion (+6.5%, contribution 4.5 p.p.). Renewals and enhancements will make available constructions worth CZK 11.1 billion (+8.2%, contribution 2.6 p.p.).
Compared to October 2007, approximate value of new constructions grew in environmental constructions (+76.4%, contribution 4.8 p.p.), other constructions (+38.1%, contribution 4.2 p.p.) and non-residential buildings (+2.3%, contribution 0.5 p.p.), and decreased in residential buildings (-16.4%, contribution -5.0 p.p.). Approximate value of renewals and enhancements increased in non-residential buildings (+21.3%, contribution 2.8 p.p.), other constructions (+27.0%, contribution 1.7 p.p.) and residential buildings (+19.4%, contribution 1.5 p.p.). A decrease was recorded in environmental constructions (-74.3%, contribution -3.3 p.p.).
 
The planning and building control authorities permitted the construction of 3 762 dwellings, which was by 1 349 dwellings fewer (-26.4%) in comparison to October 2007; 3 287 dwellings (‑1 201 dwellings) will be obtained by new construction and 475 dwellings (-148 dwellings) by renewals and enhancements. Approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 8.8 billion. The planning and building control authorities permitted the construction of buildings with a floor area of 674.7 thousand m ² (-31.7%); floor area of residential buildings decreased by 23.9% (contribution -12.7 p.p.) and of non-residential buildings by 40.5% (contribution -19.0 p.p.). The average floor area of a newly constructed dwelling was 115.2 m ² and the approximate value was CZK 22.6 thousand per m ².
 According to the Eurostat news release, WDA construction output in the EU27 was down by 3.1% year-on-year in September 2008; building construction decreased by 4.2% and civil engineering grew by 3.7%. Among the EU member states for which data were available, the highest construction output increases were recorded in Romania (+27.0%), Slovakia (+17.3%) and Poland (+11.6%). The highest decreases were registered in Spain (‑24.1%) and Germany (-0.4%).

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Notes
Contact: Vladimír 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 December 2008
End of data processing:    10 December 2008
Related publications:         /1-ep-8
8201-08 Construction in the Czech Republic
8202-08 Building Notices Received and Building Permits Granted
 
In Table 1, the data for August and September have been revised; data for October are preliminary and will be updated together with the news release for December 2008.
The data In Table 2 are finalised.

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*) Employment indicators are observed for construction enterprises with 20+ employees. The average registered number of employees does not include agency workers.