Construction - December 2011

Construction output down by 3.1% in 2011

In December 2011 the construction output grew by 14.6%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was by 5.5% higher, month-on month (m-o-m). The planning and building control authorities granted by 0.8% less building permits, y-o-y, and the approximate value of permitted constructions plummeted by 27.3%, y-o-y. The number of started dwellings was down by 12.2%, y-o-y, and the number of completed dwellings decreased by 5.9%, y-o-y.

In December 2011 the construction output increased by 14.6%, y-o-y, in real terms; if seasonally adjusted it was by 16.2% higher. December 2011 was by one working day shorter compared to the same month of the previous year. The seasonally adjusted construction output in December 2011 was by 5.5% up, m-o-m. The production in building construction increased by 13.8% (contribution +10.3 percentage points (p.p.)), y-o-y, and the production of civil engineering construction grew by 17.2% (contribution +4.3 p.p.), y-o-y.
The good result of the construction production index was caused by multiple factors. Climatic conditions were a part of them. While the very favourable weather in December 2011 (that time average daily temperature was by 2.9 °C higher compared to the long-term normal and the snow cover was minimal) allowed the construction workers to carry out virtually all construction works without any limitation, conversely, in the same period of 2010 climatic conditions were very adverse (precipitations were by 36% higher than the long-term normal and average temperature was by 3.9 °C lower compared to the normal) and thus numerous enterprises stopped their construction work. In the context of favourable weather conditions higher additional invoices for completed orders affected the end of the year more intensively. An increased demand for construction work in relation to the expected rise in the VAT since January 2012 could also play a certain role.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 7.5%, y-o-y, in December 2011. Their average monthly nominal wage increased by 0.9%, y-o-y, and reached CZK 35 163.

In December 2011 the number of building permits granted decreased by 0.8%, y-o-y; the planning and building control authorities granted 8 388 building permits. The approximate value of the permitted constructions attained CZK 19.5 billion and plummeted by 27.3% compared to the same period of 2010. The approximate value of constructions dropped in all types of construction work.

The number of dwellings started in December 2011 dropped by 12.2%, y-o-y, and attained 1 908 dwellings. The number of dwellings started dropped in family houses (by 6.4%) and in multi-dwelling buildings even plummeted (by 39.9%), year-on-year.

The number of completed dwellings fell by 5.9%, y-o-y, in December 2011 and was 4 686 dwellings. The number of completed dwellings in family houses dropped by 14.4%. The number of completed dwellings in multi-dwelling buildings soared by 36.7%. This year-on-year rapid increase was in part affected by the low comparison basis of December 2010.

According to Eurostat the WDA (working days adjusted) construction output in the EU27 increased by 0.7%, y-o-y, in November 2011. Building construction rose by 0.3% and civil engineering construction increased by 1.3%. Eurostat shall release the data for December 2011 on 17 February 2012 (at 11:00 a.m.).

CONSTRUCTION IN 2011

In 2011 the construction output fell by 3.1%, y-o-y, and by 10.8% compared to 2008, the year of boom. The planning and building control authorities granted by 1.4% more building permits, y-o-y, and the approximate value of permitted constructions dropped by 14.8%, y-o-y. The total value of newly received construction orders in the Czech Republic decreased by 12.2%. In 2011 the number of started dwellings was lower by 2.1% than in 2010 and the number of completed dwellings plummeted by 21.4%, y-o-y.

In 2011 the construction output decreased by 3.1% at constant prices, y-o-y. The building construction output recorded a year-on-year decrease by 0.3% (contribution
-0.3 p.p.) and the civil engineering construction output dropped by 8.7%, y-o-y (contribution
-2.8 p.p.). In 2011 the construction output declined by 10.8% compared to 2008, the year of boom.

The average registered number of employees*) in construction enterprises with 50+ employees decreased by 5.9%, y-o-y in 2011. Their average monthly nominal wage increased by 1.5%, y-o-y and reached CZK 29 206.

In 2011 the number of building orders of construction enterprises with 50+ employees increased by 18.1%, y-o-y; the enterprises received and concluded 47 007 orders in the Czech Republic. The total value of the orders dropped by 12.2%, y-o-y and was CZK 173.0 billion. The building construction orders were for CZK 74.2 billion (decrease by 10.7%) and those for civil engineering constructions were for CZK 98.8 billion (drop by 13.3%). In 2011 the average value of a newly concluded building order accounted for CZK 3.7 million and was by 25.6% lower, y-o-y.
At the end of 2011 construction enterprises with 50+ employees had 10.2 thousand orders contracted (growth by 3.5%) and these orders represented the inventory of still unimplemented construction works of the total value of CZK 124.2 billion (drop by 16.8%).

In 2011 the number of building permits granted was up by 1.4%, y-o-y; the planning and building control authorities granted 107 231 building permits. The approximate value of constructions permitted in 2011 accounted for CZK 339.9 billion and decreased by 14.8% compared to the year 2010.

The number of dwellings started in 2011 dropped by 2.1%, y-o-y and accounted for 27 535 dwellings. The number of dwellings started decreased, year-on-year, in multi-dwelling buildings by 13.5%; in family houses the number of dwellings started increased by 2.7%.

The number of completed dwellings declined by 21.4%, y-o-y in 2011 and attained 28 628 dwellings. The number of completed dwellings in family houses decreased by 12.0%, y-o-y, and the number of completed dwellings in multi-dwelling buildings plummeted by 39.9%.


Methodological Notes:
Responsible head: Radek Matějka, phone: (+420) 274052894 , e-mail: radek.matejka@czso.cz
Contact person: Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@czso.cz
Method of data acquisition: the CZSO direct surveys of Stav 1-12 and Stav 2-12
End of data collection: 31 January 2012
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 /csu/czso/sta_cr , and Housing Construction, Building Permits, and Construction Orders /csu/czso/bvz_cr
Date of the next News Release publication: 13 March 2012

Published: 06.02.2012
The data are valid as of the release date of the publication.