Construction - March 2011

Construction output increased month-on-month

In March 2011 the construction output increased by 4.6%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was up by 2.6%, month-on-month (m-o-m). The planning and building control authorities granted by 3.3% less building permits, y-o-y, and the approximate value of permitted constructions increased by 7.9%, y-o-y. The number of started dwellings was higher by 1.5%, y-o-y, and the number of completed dwellings dropped by 32.5%, y-o-y.

In March 2011 the construction output increased by 4.6%, y-o-y, in real terms. The construction output seasonally adjusted was higher by 2.6%, m-o-m, in March 2011. The construction production index in March 2011 was at about the level of 2006 and was by 13% lower compared to that of March 2009. Because of the low comparison basis the production in building construction rose by 3.1% (contribution +2.3 percentage points (p.p.)), y-o-y, and the production of civil engineering construction grew by 8.9% (contribution +2.3 p.p.), y-o-y.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 2.1%, y-o-y, in March 2011. Their average monthly nominal wage increased by 2.1%, y-o-y, and reached CZK 28 068.

In March 2011 the number of building permits granted was down by 3.3%, y-o-y; the planning and building control authorities granted 8 550 building permits. The approximate value of the permitted constructions attained CZK 33.3 billion and rose by 7.9% compared to the same period of 2010. This increase was affected by permits granted for constructions for energy structures and, in part, also by the low comparison basis of March 2010.

The number of dwellings started in March 2011 was up by 1.5%, y-o-y, and attained the number of 2 404 dwellings. The highest contribution came from dwellings started in top extensions to family houses and in retirement homes, while the number of dwellings started fell, year-on-year, both in family houses (by 0.9%) and in multi-dwelling buildings (by 12.1%).

The number of completed dwellings declined by 32.5%, y-o-y, in March 2011 and was 1 946 dwellings. The number of completed dwellings in family houses decreased by 0.3% and the number of completed dwellings in multi-dwelling buildings plummeted by 75.9%.
Construction in Q1 2011

In Q1 2011 the construction output increased by 5.9% at constant prices, y-o-y; when working days adjusted, the construction output rose by 5.4%. Q1 2011, compared to the same quarter of the previous year, was by one working day longer. The building construction production increased by 7.0% (contribution +5.1 p.p.) and the civil engineering construction production recorded growth by 3.1% (contribution +0.8 p.p.).

The average registered number of employees*) in construction enterprises with 50+ employees dropped by 2.0%, y-o-y in Q1 2011. Their average monthly nominal wage increased by 2.5%, y-o-y and reached CZK 26 094.

In Q1 2011 the number of building orders of construction enterprises with 50+ employees grew by 18.4%, y-o-y; the enterprises received and concluded 8 041 orders in the Czech Republic. The total value of the orders rose by 30.1%, y-o-y and was CZK 47.2 billion. The building construction orders were for CZK 20.8 billion (contribution +3.4 p.p., growth by 6.4%) and those for civil engineering constructions were for CZK 26.4 billion (contribution +26.7 p.p., increase by 58.0%). The growth in volume of construction orders concluded for civil engineering constructions was affected by the low comparison basis of Q1 2010 when the value of orders concluded dropped by 14.0% y-o-y. The average value of a newly concluded construction order in Q1 2011 was CZK 5.9.million and was by 9.9% higher, y-o-y.
By the end of Q1 2011 construction enterprises with 50+ employees had 10.5 thousand orders (growth by 11.2%) contracted and these orders represented the stock of so-far not implemented construction works at the total value of CZK 169.1 billion (increase by 2.5%).

In Q1 2011 the number of building permits granted was down by 5.1%, y-o-y; the planning and building control authorities granted 22 039 building permits. Building permits granted for new constructions accounted for 11 922 (contribution -4.3 p.p., decrease by 7.7%) and there were 10 117 building permits granted for implementation of modifications to already completed structures (contribution -0.8 p.p., decrease by 1.9%).

The approximate value of constructions permitted in Q1 2011 accounted for CZK 98.8 billion and grew by 21.4% compared to the same period of 2010. New constructions registered an increase in the approximate value of permitted constructions to CZK 74.2 billion (contribution +22.5 p.p., growth by 32.7%). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 24.6 billion (contribution -1.1 p.p., decrease by 3.5%).

The floor area of buildings permitted in Q1 2011 was 1 320.1 thousand m ², which means a growth by 0.3% compared y-o-y. The floor area of permitted residential buildings increased (contribution +2.6 p.p., growth by 4.8%), and that of non-residential buildings dropped (contribution -2.3 p.p., decrease by 5.0%).

The number of dwellings started in Q1 2011 increased by 7.1%, y-o-y, and attained the number of 6 719 dwellings. The number of dwellings started grew year-on-year both in family houses (contribution +0.3 p.p., increase by 0.5%) and in multi-dwelling buildings (contribution +5.4 p.p., increase by 22.4%).

The number of completed dwellings dropped by 33.6%, y-o-y, in Q1 2011 and reached 6 111 dwellings. The number of completed dwellings decreased both in family houses (contribution -3.9 p.p., decrease by 8.1%), and in multi-dwelling buildings (contribution -27.1 p.p., plunge by 71.7%).
According to Eurostat the WDA (working days adjusted) construction output in the EU27 increased by 2.9%, y-o-y, in February 2011. Building construction grew by 3.4% and civil engineering construction dropped by 1.1%. Eurostat shall release the data for March 2011 on 18 May 2011 (at 11:00 a.m.).

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Methodological Note:
Responsible head: Radek Matějka, phone: (+420) 274052894, e-m ail: 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 May 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 , Housing construction, Building permits, and Construction orders /csu/czso/bvz_ts
Date of the next News Release publication: 6 June 2011

Published: 09.05.2011
The data are valid as of the release date of the publication.