Construction - September 2007

Seasonally adjusted total construction output at constant prices decreased by 0.6% in September 2007, compared to August 2007. In comparison to September 2006, output at constant prices was down by 1.8%. The planning and building control authorities granted 11 465 building permits, which was by 14.0% less year-on-year. Approximate value of permitted constructions decreased by 20.8% year-on-year and reached CZK 25.2 billion. 
Seasonally adjusted total construction output at constant prices fell by 0.6% month-on-month. The trend increased by 0.4% month-on-month (see Table 3).    
      Total construction output at constant prices decreased by 1.8% year-on-year, working days adjusted (WDA) output decreased by 0.3% (September 2007 was 1 working day shorter). The fall in construction output was mainly due to a decrease in civil engineering works. Output dropped in all observed types of constructions except for building construction (new construction, reconstruction and modernisation and work abroad).
 
Contracted construction work carried out by construction enterprises with 20+ employees decreased by 2.1% year-on-year at constant prices. New construction, reconstruction and modernisation recorded a 1.5% decrease (contribution -1.3 percentage points), of which building construction grew by 3.6% (contribution 1.8 p.p.) and civil engineering works fell by 9.2% (contribution ‑3.1 p.p.). Repair and maintenance decreased by 14.1% (contribution -1.7 p.p.). Other work recorded a fall of 54.6% (contribution ‑0.3 p.p.). Construction work abroad grew by 38.9% (contribution 1.2 p.p.).
 
The number of employees in construction enterprises with 20+ employees dropped by 2.1%*) against September 2006. The average monthly nominal wage of employees increased by 4.8% year-on-year and reached CZK 21 742 (the real wage rose by 1.9%). The average hourly wage grew by 11.0% year-on-year and stood at CZK 155. Labour productivity per employee remained at the level of September 2006 and labour productivity per hour worked grew by 6.0%.
 
The planning and building control authorities granted 11 465**) building permits in September 2007 (of which 7 000 for new constructions and 4 465 for renewals and enhancements). Building permits granted fell by 14.0% year-on-year.
 
The approximate value of constructions permitted in September 2007 decreased by 20.8% in comparison to September 2006 and reached CZK 25.2 billion. New construction is valued at CZK 17.8 billion (down by 22.4%, contribution -16.1 p.p.). Renewals and enhancements will make available constructions worth CZK 7.4 billion (down by 16.9%, contribution -4.7 p.p.). The decrease in the approximate value of new construction is mostly caused by other constructions (down by 39.7%, contribution -6.1%) and non-residential buildings (down by 37.3%, contribution -7.5 p.p.) due to the high comparative basis of September 2006. The approximate value of new residential buildings decreased by 8.3% (contribution -2.4 p.p.). Renewals and enhancements saw the highest decrease of approximate value in other constructions (down by 37.6%, contribution -2.9 p.p.).
 
The planning and building control authorities permitted construction of 3 981dwellings, which was by 327 dwellings fewer (-7.6%) than in September 2006. Out of that, 3 515 dwellings (down by 245) will be obtained by new construction and 466 dwellings (down by 82) by renewals and enhancements. The approximate value of newly permitted dwellings in multi-dwelling buildings was CZK 8.0 billion.
The planning and building control authorities permitted construction of buildings with a floor space of 723.9 thousand m ² (-33.7%), of which the floor space of residential buildings decreased by 11.1% and of non-residential buildings fell by 53.5%. The average floor space of a newly constructed dwelling was 120.8 m ² and approximate value was CZK 20.1 thousand per m ².
According to Eurostat News Release, WDA construction output in the EU27 grew by 4.0% y-o-y in August 2007, of which building construction increased by 3.7% and civil engineering works by 3.9%. Among the EU member states for which data were available, the highest increases were observed in Romania (+37.0%), Slovenia (+31.4%) and Poland (+14.8%). The highest decreases were recorded in Sweden (-3.2%), Germany (-3.0%) and Slovakia (-1.4%).

Analysis - Analysis of the construction sector – third quarter of 2007

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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:       1 November 2007
End of data processing:    6 November 2007
Related publications:         /1-ep-8
8201-07 Construction
8202-07 Building Permits Granted
 
Data in Table 1 for July, August and September 2007 are preliminary and will be updated with release for October 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.