Construction - December 2010

Construction output fell by 7.8% in 2010

In December 2010 the seasonally adjusted construction output was down by 13.4%, month-on-month (m-o-m), and decreased by 14.6%, in the year-on-year (y-o-y) comparison. The planning and building control authorities granted by 2.9% less building permits, y-o-y, and the approximate value of permitted constructions fell by 25.6%, y-o-y. The number of started dwellings was lower by 0.8%, y-o-y, and the number of completed dwellings dropped by 16.5%, y-o-y.
In 2010 the construction output fell by 7.8%, y-o-y. The planning and building control authorities granted by 6.2% less building permits, y-o-y, and the approximate value of permitted constructions fell by 2.2%, y-o-y. The total value of newly received construction orders in the Czech Republic increased by 5.4%, y-o-y. In 2010 the number of started dwellings was lower by 24.6% than in 2009 and the number of completed dwellings decreased by 5.3%, y-o-y.

Construction in December 2010

In December 2010 the construction output decreased by 14.6% at constant prices, y-o-y; when working days adjusted, the construction output dropped by 15.7%. December 2010, compared to the same month of the previous year, was by one working day longer. The seasonally adjusted construction output was by 13.4% lower, month-on-month in December 2010. The construction output drop was affected, besides a decline in building orders, also by adverse climate conditions (in December 2010 there was rainfall by 36% higher than the long-term normal and average temperature was by 3.9°C lower compared to the long-term normal). The building construction output decreased by 14.3% (contribution -10.5 p.p.) and the civil engineering construction output dropped by 15.6% (contribution -4.1 p.p.).

The average registered number of employees (excluding agency workers*) in construction enterprises with 50+ employees fell by 0.1%, y-o-y in December 2010. Their average monthly nominal wage decreased by 6.5%, y-o-y and reached CZK 35 256. The average nominal wage drop was caused, in part, by the fact that the base of the year 2009 was high because extraordinary annual bonuses, thirteenth wages, and also bonuses for the completion of large projects and achievements of economic results were paid in 2009. At the end of 2010 similar bonuses were also paid yet their extent and volume were not as high as those in 2009.

In December 2010 the number of building permits granted was down by 2.9%, y-o-y; the planning and building control authorities granted 8 456 building permits; 4 910 building permits for new constructions (contribution -0.8 p.p., drop by 1.4%), and 3 546 building permits for modifications to completed constructions (contribution -2.1 p.p., decline by 4.9%).

The approximate value of constructions permitted in December 2010 accounted for CZK 26.8 billion and plummeted by 25.6% compared to the same period in 2009. New constructions registered a decrease in the approximate value of permitted constructions to CZK 15.4 billion (contribution -14.9 p.p., decline by 25.8%). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 11.4 billion (contribution -10.7 p.p., decrease by 25.4%).

The number of dwellings started in December 2010 fell by 0.8%, y-o-y and attained the number of 2 172 dwellings. The number of dwellings started in family houses decreased by 4.7%, y-o-y (contribution -2.5 p.p.). The number of dwellings started in multi-dwelling buildings rose slightly by 0.2% (contribution +0.1 p.p.).

The number of completed dwellings declined by 16.5%, y-o-y in December 2010 and reached 4 982 dwellings. The number of completed dwellings in family houses increased by 4.6% (contribution +2.3 p.p.), and the number of completed dwellings in multi-dwelling buildings plummeted by 57.2% (contribution -21.6 p.p.).
According to Eurostat the WDA (working days adjusted) construction output in the EU27 decreased by 1.7%, y-o-y in November 2010. Building construction shrank by 0.7% and civil engineering construction dropped by 6.5%. Eurostat shall release the data for December 2010 on 17 February 2011 (at 11:00 a.m.).
Construction in Q4 2010

In Q4 2010 the construction output decreased by 4.9% at constant prices, y-o-y; when working days adjusted, the construction output dropped by 5.2%. Q4 2010, compared to the same quarter of the previous year, was by one working day longer. The building construction output decreased by 3.1% (contribution -2.0 p.p.) and the civil engineering construction output dropped by 8.4% (contribution
-2.9 p.p.).

The average registered number of employees (excluding agency workers*) in construction enterprises with 50+ employees rose by 0.1%, y-o-y in Q4 2010. Their average monthly nominal wage increased by 0.9%, y-o-y and reached CZK 32 522.

In Q4 2010 the number of building orders of construction enterprises with 50+ employees soared by 29.8%, y-o-y; the enterprises received and concluded 9 968 orders in the Czech Republic. The total value of the orders fell by 19.2%, y-o-y and was CZK 39.2 billion. The building construction orders were for CZK 14.1 billion (contribution -11.1 p.p., decline by 27.6%) and those for civil engineering constructions were CZK 25.1 billion (contribution -8.1 p.p., drop by 13.5%).

In Q4 2010 the number of building permits granted was down by 3.8%, y-o-y; the planning and building control authorities granted 26 471 building permits.

The approximate value of constructions permitted in Q4 2010 accounted for CZK 92.9 billion and dropped by 7.8% compared to the same period of 2009. New constructions registered a decrease in the approximate value of permitted constructions to CZK 62.8 billion (contribution -3.8 p.p., decline by 5.7%). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 30.1 billion (contribution -4.0 p.p., decrease by 11.9%).

The number of dwellings started in Q4 2010 dropped by 19.1%, y-o-y and attained the number of 6 168 dwellings. The number of dwellings started decreased year-on-year both in family houses (contribution -6.9 p.p., drop by 12.5%) and in multi-dwelling buildings (contribution -6,1 p.p., big fall by 27.0%).

The number of completed dwellings increased by 1.9%, y-o-y in Q4 2010 and reached 12 911 dwellings. The number of completed dwellings in family houses increased (contribution +8.0 p.p., growth by 14.2%), and the number of completed dwellings in multi-dwelling buildings plummeted (contribution -9.9 p.p., big fall by 30.6%).
Construction in 2010

In 2010 the construction output decreased by 7.8% at constant prices, y-o-y; when working days adjusted, the construction output dropped by 8.0%. The year 2010, compared to the previous year, was by two working days longer. The building construction output recorded a year-on-year decrease by 8.4% (contribution -5.6 p.p.) and the civil engineering construction output dropped by 6.7%, y-o-y (contribution -2.2 p.p.).

The average registered number of employees (excluding agency workers*) in construction enterprises with 50+ employees decreased by 3.0%, y-o-y in 2010. Their average monthly nominal wage increased by 2.5%, y-o-y and reached CZK 28 734.

In 2010 the number of building orders of construction enterprises with 50+ employees increased by 15.7%, y-o-y; the enterprises received and concluded 39 121 orders in the Czech Republic. The total value of the orders increased by 5.4%, y-o-y and was CZK 194.3 billion. The building construction orders were for CZK 81.2 billion (contribution +2.5 p.p., growth by 6.1%) and those for civil engineering constructions were CZK 113.1 billion (contribution +2.9 p.p., increase by 5.0%). The increase in value of new building orders was influenced by the low comparative base of 2009 when the value of received and concluded orders plummeted by 26.2%, y-o-y.
In 2010 the average value of a newly concluded building order accounted for CZK 5.0 million and was by 8.9% lower, y-o-y.
At the end of 2010 construction enterprises with 50+ employees had 9.2 thousand orders contracted (growth by 4.5%) and these orders represented the inventory of still unimplemented construction works of the total value of CZK 143.3 billion (drop by 18.0%).

In 2010 the number of building permits granted was down by 6.2%, y-o-y; the planning and building control authorities granted 105 743 building permits; 59 106 building permits for new constructions (contribution -3.6 p.p., drop by 6.4%), and 46 637 building permits for modifications to completed constructions (contribution -2.6 p.p., drop by 5.8%).

The approximate value of constructions permitted in 2010 accounted for CZK 398.8 billion and decreased by 2.2% compared to the year 2009. New constructions should erect structures of the value of CZK 281.5 billion (contribution +4.0 p.p., growth by 6.2%). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 117.3 billion (contribution -6.2 p.p., decrease by 17.6%). Constructions of 27 structures to have approximate value of over CZK 1 billon each were permitted - in a great portion these are structures of transport infrastructure and structures for energy and fuel generation and supply.

The floor area of buildings permitted in 2010 was 6 496.0 thousand m ², which means a drop by 4.3%, y-o-y. The floor area of permitted residential buildings declined by 19.6% and that of non-residential buildings increased by 20.9%.

The number of dwellings started in 2010 dropped by 24.6%, y-o-y and accounted for 28 135 dwellings. The number of dwellings started decreased, year-on-year, both in family houses (contribution -5.7 p.p., drop by 11.4%) and in multi-dwelling buildings (contribution -14.1 p.p., big fall by 47.5%).

The number of completed dwellings declined by 5.3%, y-o-y in 2010 and attained 36 446 dwellings. The number of completed dwellings outnumbered that of started dwellings. The number of completed dwellings in family houses increased (contribution +1.7 p.p, growth by 3.3%), and the number of completed dwellings in multi-dwelling buildings fell (contribution -7.4 p.p., drop by 20.8%).

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Methodological Note:
Contact person:
Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@czso.cz
Data source: direct surveys of the CZSO
End of data collection: 1 February 2011
End of data processing: 3 February 2011

* 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 contract of employment. Data on the registered number of employees in construction also exclude agency workers, who have contract of employment, however, in other activity than construction.

Published: 07.02.2011
The data are valid as of the release date of the publication.