Construction - July 2011

Notable decline in construction continued

In July 2011 the construction output dropped by 11.1%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was lower by 1.6%, month-on-month (m-o-m). The planning and building control authorities granted by 5.5% more building permits, y-o-y, and the approximate value of permitted constructions plummeted by 25.1%, y-o-y. The number of started dwellings was down by 6.2%, y-o-y, and the number of completed dwellings increased by 3.4%, y-o-y.

In July 2011 the construction output decreased by 11.1%, y-o-y, in real terms, if seasonally adjusted it dropped by 10.0%. July 2011 was by one working day shorter compared to the same month of the previous year. The construction output seasonally adjusted was lower by 1.6%, m-o-m, in July 2011. The production in building construction fell by 6.4% (contribution -4.1 percentage points (p.p.)), y-o-y, and the production of civil engineering construction dropped by 19.9% (contribution
-7.0 p.p.), y-o-y. Compared to the same period of 2008, the year of boom, the construction output declined by 17.6% since the beginning of 2011 till the end of July 2011.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 7.0%, y-o-y, in July 2011. Their average monthly nominal wage increased by 0.5%, y-o-y, and reached CZK 30 392.

In July 2011 the number of building permits granted was up by 5.5%, y-o-y; the planning and building control authorities granted 9 159 building permits. The approximate value of the permitted constructions attained CZK 28.6 billion and plummeted by 25.1% compared to the same period of 2010. The value of the constructions permitted was drawn down namely by the drop in the value of permits granted for transport infrastructure constructions and new non-residential buildings.

The number of dwellings started in July 2011 fell by 6.2%, y-o-y, and attained the number of 2 290 dwellings. The overall decline was significantly affected by the low number of started dwellings in non-residential buildings. The number of dwellings started in family houses increased by 5.0%, year-on-year. The number of dwellings started in multi-dwelling buildings jumped up by 30.8% yet this rapid increase was affected by a low comparison basis of the last year when the number of dwellings started in multi-dwelling buildings plummeted by almost 90%, y-o-y.

The number of completed dwellings grew by 3.4%, y-o-y, in July 2011 and was 1 912 dwellings. The number of completed dwellings in multi-dwelling buildings jumped up by 41.9% and the number of completed dwellings in family houses fell by 11.5%.
According to Eurostat the WDA (working days adjusted) construction output in the EU27 decreased by 8.1%, y-o-y, in June 2011. Building construction shrunk by 9.7% and civil engineering construction increased by 0.6%. Eurostat shall release the data for July 2011 on 17 September 2011 (at 11:00 a.m.).

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Methodological Note:
Responsible head: Radek Matějka, phone: (+420) 2740528 94, e-mail: radek.matejka@czso.cz
Contact person: Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@czso.cz
Method of data acquisition: direct surveys Stav 1-12 and Stav 2-12 of the CZSO
End of data collection: 31 August 2011
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_ts , and Housing construction, Building permits, and Construction orders /csu/czso/bvz_ts
Date of the next News Release publication: 7 October 2011

Published: 06.09.2011
The data are valid as of the release date of the publication.