Construction - June 2010

Marked decline in housing construction

In June 2010 seasonally adjusted construction output decreased by 0.4%, m-o-m, and by 4.7%, in the year-on-year comparison. The planning and building control authorities granted by 6.6% less building permits, year-on-year. Approximate value of permitted constructions decreased by 6.8%, year-on-year. The number of started dwellings fell by 31.8% and completed dwellings dropped by 41.2%, y-o-y.

In June 2010 construction output decreased by 4.7% at constant prices, compared with June 2009. Seasonally adjusted construction output was 0.4% down in June 2010, m-o-m. Building construction output fell by 5.5% (contribution -3.5 p.p.) and the civil engineering output registered a decrease by 3.2% (contribution -1.2 p.p.).

The average registered number of employees in construction enterprises with 50 or more employees dropped by 3.4% compared with June 2009. Their average monthly nominal wage increased by 4.3% compared with June 2009 and reached CZK 27 936.

In June 2010 the number of building permits granted was down by 6.6%, y-o-y, the planning and building control authorities granted 9 407 building permits; 5 218 permits for new construction (contribution -2.3 p.p., drop by 4.3%) and 4 189 permits for changes in completed constructions (contribution -4.3 p.p., drop by 9.2%).

The approximate value of constructions permitted in June 2010 accounted for CZK 36.8 billion and compared to corresponding period in 2009 it fell by 6.8%. New constructions should see an increase to CZK 28.2 billion (contribution +15.7 p.p., growth by 28.1%). Renewals and enhancements should produce constructions worth CZK 8.6 billion (contribution -22.5 p.p., drop by 50.8%).

The number of dwellings started dropped by 31.8% compared to June 2009 to reach 2 448 dwellings. The number of dwellings started in family houses dropped by 19.2%, y-o-y, (contribution -9.1 p.p.). The number of dwellings started in multi-dwelling buildings decreased by 45.9% (contribution -16.0 p.p.).

The number of completed dwellings dropped by 41.2% compared to June 2009 and reached 1 539 dwellings. The number of completed dwellings in family houses decreased by 18.3% (contribution -8.1 p.p.) and in multi-dwelling buildings the number dropped by 74.1% (contribution -26.2 p.p.).
According to the Eurostat news release, WDA construction output in the EU 27 dropped by 2.4% in May 2010 compared with May 2009. Building construction fell by 2.2% and civil engineering fell by 1.5%. The data for June 2010 will be released by Eurostat at 11:00 a.m. on 18 August 2010.
Construction in Q2 2010

In Q2 2010 construction output decreased by 6.3% at constant prices, compared with Q2 2009, working days adjusted construction output fell by 7.1%. Q2 2010 had two working days more compared to Q2 2009. Building construction output fell by 6.8% (contribution -4.5 p.p.) and the civil engineering output registered a decrease by 5.3% (contribution -1.8 p.p.).

The average registered number of employees in construction enterprises with 50 or more employees dropped by 4.0% compared with Q2 2009. Their average nominal wage increased by 2.4% compared with Q2 2009 and reached CZK 28 405.

In Q2 2010 the number of construction orders for construction enterprises with 50 or more employees increased by 7.7%, y-o-y. They booked 10 431 new domestic construction orders. Total value of these orders made up CZK 53.2 billion (-0.3%, y-o-y), building construction orders CZK 18.5 billion (contribution -2.2 p.p., drop by 5.8%) and in civil engineering orders CZK 34.7 billion (contribution +1.9 p.p., growth by 3.0%). Average value per new construction order in Q2 2010 was CZK 5.1 mil. (-7.4%) compared to Q2 2009.
At the end of Q2 2010 construction enterprises with 50 or more employees registered 10.6 thousand contracted orders (down by 7.7%). These orders represented a stock or work to be done totalling CZK 158.3 billion (down by 20.7%).

In Q2 2010 the number of building permits granted was down by 4.7%, y-o-y, the planning and building control authorities granted 28 232 building permits; 15 521 permits for new constructions (contribution -2.2 p.p., drop by 4.1%) and 12 711 permits for changes in completed constructions (contribution -2.5 p.p., drop by 5.5%). The number of building permits decreased in all categories of construction, only building permits granted for environmental constructions recorded an increase as compared to 2009.

The approximate value of constructions permitted in Q2 2010 was CZK 114.4 billion (+14.0% compared to Q2 2009). New constructions should see an increase to CZK 82.0 billion (contribution +20.4 p.p., growth by 33.3%). Renewals and enhancements should produce constructions worth CZK 32.4 billion (contribution -6.4 p.p., drop by 16.5%). Approximate value of constructions permitted increased mainly due to permits granted for expensive constructions of transport infrastructure, new constructions designed for power production and construction of photovoltaic power plants.

Floor area of buildings permitted in Q2 2010 was 1 983.9 thousand m ² (+14.3% in the year-on-year comparison). Floor area of permitted residential buildings dropped (contribution -9.5 p.p., down by 14.6%) and in non-residential buildings it grew (contribution +23.8 p.p., up by 68.6%).

The number of dwellings started dropped by 17.6% compared to Q2 2009 to reached 8 024 dwellings. The number of dwellings started dropped both in family houses (contribution -4.3 p.p., down by 8.2%) and in multi-dwelling buildings (contribution -10.3 p.p., down by 34.4%). Other categories also recorded a drop in the number of dwellings started (contribution -3.0 p.p., down by 16.7%).

The number of completed dwellings dropped by 10.9% compared to Q2 2009 and reached 6 921 dwellings. The number of completed dwellings dropped both in family houses (contribution -2.8 p.p., down by 6.1%) and in multi-dwelling buildings (contribution -9.8 p.p., down by 25.6%). Other categories recorded an increase in the number of completed dwellings (contribution +1.7 p.p., up by 11.3%).

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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: 2 August 2010
End of data processing: 4 August 2010

Published: 06.08.2010
The data are valid as of the release date of the publication.