Construction - September 2008
Civil engineering compensated for fall in building construction
Publication Date: 11. 11. 2008
Product Code: r-8202-08
In September 2008 seasonally adjusted total construction output at constant prices was up by 0.8%, compared with the previous month. In comparison to September 2007, output at constant prices grew by 9.2% (by 4.4% WDA). The planning and building control authorities granted 11 003 building permits, i.e. by 4.0% more year-on-year. Approximate value of permitted constructions increased by 36.9% year-on-year and reached CZK 34.6 billion.
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Seasonally adjusted total construction output at constant prices increased by 0.8% month-on-month. The trend rose by 0.4% month-on-month (see Table 3).

Total construction output at constant prices increased by 9.2% year-on-year, working days adjusted (WDA) output rose by 4.4% (September 2008 was by three working days longer than September 2007). Civil engineering kept growing (new construction, reconstruction and modernisation as well as repair and maintenance). Decrease in building construction continued, mainly in new construction.
Contracted construction work carried out by construction enterprises with 20+ employees increased by 8.6% year-on-year at constant prices. New construction, reconstruction and modernisation rose by 8.1% (contribution 6.8 percentage points); building construction fell by 3.7% (contribution -2.0 p.p.) and civil engineering grew by 27.9% (contribution 8.8 p.p.). Repair and maintenance increased by 25.1% (contribution 2.7 p.p.) and other work grew by 60.4% (contribution 0.2 p.p.). Construction work abroad dropped by 22.8% (contribution -1.1 p.p.).
The number of employees in construction enterprises with 20+ employees fell by 0.2%*) against September 2007. The average monthly nominal wage of employees increased by 10.8% year-on-year and reached CZK 24 073 (real wage grew by 3.9%). The average hourly wage grew by 1.0% year-on-year and stood at CZK 153. Labour productivity per employee rose by 8.9% and labour productivity per hour worked decreased by 2.7%. Hours worked increased by 11.6 due to a higher number of working days.
The planning and building control authorities granted 11 003 building permits (-4.0% on September 2007); 6 422 were for new constructions and 4 581 for renewals and enhancements. Compared to September 2007, building permits for new constructions grew in non-residential buildings (+14.4%) and residential buildings (+9.5%). Decreases were recorded in environmental constructions (-34.2%) and other constructions (-3.1%). Building permits for renewals and enhancements grew most in other constructions (+31.4%).
Approximate value of permitted constructions grew by 36.9% in comparison to September 2007 and reached CZK 34.6 billion. New constructions are valued at CZK 23.0 billion (+29.0%, contribution 20.5 p.p.). Renewals and enhancements will make available constructions worth CZK 11.6 billion (+56.0%, contribution 16.4 p.p.).
Compared to September 2007, approximate value of new constructions grew in all types of constructions – by 60.4% in non-residential buildings (contribution 9.7 p.p.), by 48.3% in environmental constructions (contribution 4.4 p.p.), by 33.3% in other constructions (contribution 3.9 p.p.) and by 7.3% in residential buildings (contribution 2.5 p.p.). Approximate value of renewals and enhancements was most affected by other constructions where the approximate value more than tripled due to the low comparative basis of September 2007.
The planning and building control authorities permitted the construction of 4 072 dwellings, which was by 91 dwellings more (+2.3%%) in comparison to September 2007. Out of that, 3 607 dwellings (+92 dwellings) will be obtained by new construction and 465 dwellings (-1 dwelling) 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 area of 773.3 thousand m 2 (+6.8%); floor area of non-residential buildings increased by 9.9% (contribution 3.7 p.p.) and of residential buildings by 5.0% (contribution 3.1 p.p.). The average floor area of a newly constructed dwelling was 123.3 m 2 and the approximate value was CZK 20.8 thousand per m 2.
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According to Eurostat News Release, WDA construction output in the EU27 was down by 1.5% year-on-year in August 2008; building construction decreased by 1.2% and civil engineering dropped by 1.5%. Among the EU member states for which data were available, the highest increases were recorded in Romania (+28.5%), Slovakia (+10.4%), Poland (+7.4%) and Germany (+0.7%). The highest decrease was registered in Spain (‑8.4%).Analysis - Analysis of the construction sector in the third quarter of 2008
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: 4 November 2008
End of data processing: 7 November 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 July, August and September 2008 are preliminary and will be updated together with the release for October 2008.
The data in Table 2 are finalised.
*) Employment indicators are observed for construction enterprises with 20+ employees. The average registered number of employees does not include agency workers.