Construction - October 2011

In October 2011 the construction output dropped by 8.0%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was at the level of the previous month. The planning and building control authorities granted by 1.8% more building permits, y-o-y, and the approximate value of permitted constructions plummeted by 34.2%, y-o-y. The number of started dwellings was up by 21.2%, y-o-y, and the number of completed dwellings dropped by 16.9%, y-o-y.
In October 2011 the construction output decreased by 8.0%, y-o-y, in real terms; if seasonally adjusted it was at the level of the previous month. The production in building construction fell by 5.9% (contribution -3.9 percentage points (p.p.)), y-o-y, and the production of civil engineering construction dropped by 11.8% (contribution -4.1 p.p.), y-o-y. Compared to the same period of 2008, the year of boom, the construction output declined by 14.4% since the beginning of 2011 till the end of October 2011.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 8.5%, y-o-y, in October 2011. Their average monthly nominal wage increased by 1.1%, y-o-y, and reached CZK 29 851.

In October 2011 the number of building permits granted increased by 1.8%, y-o-y; the planning and building control authorities granted 9 552 building permits. The approximate value of the permitted constructions attained CZK 26.4 billion and plummeted by 34.2% compared to the same period of 2010. The approximate value of constructions dropped almost in all types of construction work, and namely in the new construction. The drop was in the greatest portion caused by the decline in construction of environmental protection structures, which approximate value reached its peak a year ago due to a massive granting of permits for photovoltaic power stations. The approximate value of the constructions for dwelling was the only one growing year-on-year.

The number of dwellings started in October 2011 grew by 21.2%, y-o-y, and attained the number of 2 452 dwellings. The number of dwellings started in family houses increased by 14.5%, year-on-year. The number of dwellings started in multi-dwelling buildings soared by 48.3%. The year-on-year high increase was in part affected by the very low comparison basis of October 2010.

The number of completed dwellings dropped by 16.9%, y-o-y, in October 2011 and was 2 904 dwellings. The number of completed dwellings in family houses decreased by 13.5%. The number of completed dwellings in multi-dwelling buildings plummeted by 40.8%.
According to Eurostat the WDA (working days adjusted) construction output in the EU27 increased by 0.6%, y-o-y, in September 2011. Building construction maintained the level of September 2010 and civil engineering construction increased by 3.0%. Eurostat shall release the data for October 2011 on 19 December 2011 (at 11:00 a.m.).

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Methodological Note:
Responsible head: Radek Matějka, phone: (+420) 27 4052894, e-mail: radek.matejka@csu.gov.cz
Contact person: Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@csu.gov.cz
Method of data acquisition: direct surveys Stav 1-12 and Stav 2-12 of the CZSO
End of data collection: 1 December 2011
Specific methodological notes: *)The registered number of employees indicator does not include: persons working under various contracts for work, working owners of enterprises and cooperating household members, who do not have an employment contract. Data on the registered number of employees in construction also exclude agency workers, who have an employment contract, however, in other activity than construction.
Following publications: time series in Construction /produkty/sta_ts , and Housing construction, Building permits, and Construction orders /produkty/bvz_ts
Date of the next News Release publication: 6 January 2012