Construction - July 2010

Further decline in construction output and housing construction

In July 2010 seasonally adjusted construction output increased by 1.5%, m-o-m, and decreased by 4.5%, in the year-on-year comparison. The planning and building control authorities granted by 12.3% less building permits, year-on-year. Approximate value of permitted constructions decreased by 6.0%, year-on-year. The number of started dwellings fell by 41.2% and completed dwellings dropped by 24.3%, y-o-y.

In July 2010 construction output decreased by 4.5% at constant prices, compared with July 2009, working days adjusted construction output fell by 2.1%. July 2010 had 2 working days less compared to July 2009. Seasonally adjusted construction output was 1.5% up in July, m-o-m. Building construction output fell by 6.3% (contribution -4.1 p.p.) and the civil engineering output registered a decrease by 1.2% (contribution -0.4 p.p.).

The average registered number of employees in construction enterprises with 50 or more employees dropped by 3.4% compared with July 2009. Their average monthly nominal wage increased by 5.3% compared with July 2009 and reached CZK 30 598.

In July 2010 the number of building permits granted was down by 12.3%, y-o-y, the planning and building control authorities granted 8 679 building permits; 4 979 permits for new construction (contribution -4.8 p.p., drop by 8.8%) and 3 700 permits for changes in completed constructions (contribution -7.5 p.p., drop by 16.7%).

The approximate value of constructions permitted in July 2010 accounted for CZK 38.1 billion and compared to the corresponding period in 2009 it fell by 6.0%. New constructions registered an increase in the approximate value of permitted constructions to CZK 27.7 billion (contribution +9.3 p.p., growth by 15.7%) mainly due to permits granted for expensive constructions of transport infrastructure, new constructions for power engineering and photovoltaic power plants. Renewals and enhancements should produce constructions worth CZK 10.4 billion (contribution -15.3 p.p., drop by 37.4%).

The number of dwellings started dropped by 41.2% compared to July 2009 to reach 2 441 dwellings. The number of dwellings started in family houses dropped by 10.4%, y-o-y, (contribution -4.4 p.p.). The number of dwellings started in multi-dwelling buildings fell by 88.1% (contribution -37.2 p.p.).

The number of completed dwellings dropped by 24.3% compared to July 2009 and reached 1 850 dwellings. The number of completed dwellings in family houses decreased by 5.5% (contribution -2.3 p.p.) and in multi-dwelling buildings the number dropped by 46.4% (contribution -18.9 p.p.).
According to the Eurostat news release, WDA construction output in the EU 27 increased by 5.4% in June 2010 compared with June 2009. Building construction increased by 7.5% and civil engineering fell by 0.6%. The data for July 2010 will be released by Eurostat at 11:00 a.m. on 17 September 2010.

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Notes:
Contacts:
Petra Cuřínová, phone: 274054199, e-mail: petra.curinova@czso.cz
Source of data: CZSO surveys
End of data collection: 31 August 2010
End of data processing: 2 September 2010

Published: 06.09.2010
The data are valid as of the release date of the publication.