Construction - June 2011

Decline in the construction output accelerated

In June 2011 the construction output decreased by 6.3%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was lower by 0.2%, month-on-month (m-o-m). The planning and building control authorities granted by 7.9% more building permits, y-o-y, and the approximate value of permitted constructions decreased by 8.3%, y-o-y. The number of started dwellings was down by 4.3%, y-o-y, and the number of completed dwellings dropped by 16.9%, y-o-y.

In June 2011 the construction output decreased by 6.3%, y-o-y, in real terms, following the May decline by 4.9%. The construction output seasonally adjusted was lower by 0.2%, m-o-m, in June 2011. The production in building construction fell by 2.7% (contribution -1.7 percentage points (p.p.)), y-o-y, and the production of civil engineering construction dropped by 12.4% (contribution
-4.6 p.p.), y-o-y.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 4.7%, y-o-y, in June 2011. Their average monthly nominal wage decreased by 2.7%, y-o-y, and reached CZK 28 222.

In June 2011 the number of building permits granted was up by 7.9%, y-o-y; the planning and building control authorities granted 10 147 building permits. The approximate value of the permitted constructions attained CZK 33.8 billion and dropped by 8.3% compared to the same period of 2010.

The number of dwellings started in June 2011 fell by 4.3%, y-o-y, and attained the number of 2 342 dwellings. The number of dwellings started in multi-dwelling buildings plummeted by 54.7%. The number of dwellings started in family houses increased by 17.6%, year-on-year.

The number of completed dwellings declined by 16.9%, y-o-y, in June 2011 and was 1 279 dwellings. The number of completed dwellings in multi-dwelling buildings plummeted by 36.0% and the number of completed dwellings in family houses fell by 6.9%.
Construction in Q2 2011

In Q2 2011 the construction output decreased by 5.7%, y-o-y, in real terms. The building construction production decreased by 2.5% (contribution -1.6 p.p.) and the civil engineering construction production recorded a decline by 11.7% (contribution -4.1 p.p.).

The average registered number of employees*) in construction enterprises with 50+ employees dropped by 4.1%, y-o-y in Q2 2011. Their average monthly nominal wage increased by 0.4%, y-o-y and reached CZK 29 032.

In Q2 2011 the number of building orders of construction enterprises with 50+ employees grew by 21.1%, y-o-y; the enterprises received and concluded 13 690 orders in the Czech Republic. The total value of the orders dropped by 29.1%, y-o-y and was CZK 41.2 billion. The building construction orders were for CZK 17.5 billion (contribution -5.2 p.p., drop by 14.7%) and those for civil engineering constructions were for CZK 23.7 billion (contribution -23.9 p.p., drop by 36.9%). The decline in volume of construction orders concluded for civil engineering constructions was affected by the higher comparison basis of Q2 2010 when the value of orders concluded increased by 11.5%, y-o-y. The average value of a newly concluded construction order in Q2 2011 was CZK 3.0 million and was by 41.4% lower, y-o-y.
By the end of Q2 2011 construction enterprises with 50+ employees had 13.3 thousand orders (growth by 12.1%) contracted and these orders represented the stock of so-far not implemented construction works at the total value of CZK 165.3 billion (decrease by 3.8%).

In Q2 2011 the number of building permits granted was up by 6.0%, y-o-y; the planning and building control authorities granted 29 925 building permits. Building permits granted for new constructions accounted for 16 421 (growth by 5.8%) and there were 13 504 building permits granted for implementation of modifications to already completed structures (increase by 6.2%).

The approximate value of constructions permitted in Q2 2011 accounted for CZK 94.4 billion and dropped by 17.5% compared to the same period of 2010. New constructions registered a decrease in the approximate value of permitted constructions to CZK 65.2 billion (drop by 20.5%). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 29.2 billion (decrease by 10.1%).

The floor area of buildings permitted in Q2 2011 was 1 869.6 thousand m ², which means a decline by 5.8% compared y-o-y. The floor area of permitted residential buildings decreased by 3.0%, and that of non-residential buildings dropped by 8.4%.

The number of dwellings started in Q2 2011 decreased by 5.4%, y-o-y, and attained the number of 7 593 dwellings. The number of dwellings started in multi-dwelling buildings year-on-year plummeted by 40.5%, yet in family houses the number of dwellings started increased by 7.0%.

The number of completed dwellings dropped by 22.1%, y-o-y, in Q2 2011 and was 5 394 dwellings. The number of completed dwellings decreased both in multi-dwelling buildings (plunge by 44.6%), and in family houses (decrease by 3.1%).
According to Eurostat the WDA (working days adjusted) construction output in the EU27 decreased by 1.0%, y-o-y, in May 2011. Building construction shrunk by 2.5% and civil engineering construction increased by 4.4%. Eurostat shall release the data for June 2011 on 18 August 2011 (at 11:00 a.m.).

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Methodological Note:
Responsible head: Radek Matějka, phone: (+420) 27405 2894, 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: 2 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: 6 September 2011

Published: 08.08.2011
The data are valid as of the release date of the publication.