Construction - September 2010

Slowdown in housing construction continued

In September 2010 seasonally adjusted construction output remained unchanged, month-on-month and decreased by 7.3%, in the year-on-year comparison. The planning and building control authorities granted by 12.0% less building permits, y-o-y. Approximate value of permitted constructions decreased by 26.3%, y-o-y. The number of started dwellings fell by 36.7% and completed dwellings dropped by 8.9%, y-o-y.

In September 2010 construction output decreased by 7.3% at constant prices, compared with September 2009. Seasonally adjusted construction output remained unchanged in September 2010, month-on-month. Building construction output fell by 1.7% (contribution -1.1 percentage point) and the civil engineering output decreased by 17.2% (contribution -6.2 p.p.).

The average registered number of employees (excluding agency workers*) in construction enterprises with 50+ employees dropped by 1.3% compared with September 2009. Their average monthly nominal wage decreased by 0.2% compared with September 2009 and reached CZK 27 467.

In September 2010 the number of building permits granted was down by 12.0%, y-o-y; the planning and building control authorities granted 9 054 building permits, 5 091 permits for new construction (contribution -6.6 p.p., drop by 11.8%) and 3 963 permits for changes in completed constructions (contribution -5.4 p.p., drop by 12.2%).

The approximate value of constructions permitted in September 2010 accounted for CZK 31.9 billion and compared to the corresponding period in 2009 it decreased by 26.3%. New constructions registered a decrease in the approximate value of permitted constructions to CZK 22.6 billion (contribution -19.9 p.p., drop by 27.6%). Renewals and enhancements should produce constructions worth CZK 9.3 billion (contribution -6.4 p.p., drop by 23.0%).

The number of dwellings started dropped by 36.7% compared to September 2009 to reach 2 436 dwellings. The number of dwellings started in family houses decreased by 16.4%, y-o-y (contribution -7.4 p.p.). The number of dwellings started in multi-dwelling buildings fell by 64.4% (contribution -24.0 p.p.).

The number of completed dwellings dropped by 8.9% compared to September 2009 and reached 3 363 dwellings. The number of completed dwellings in family houses decreased by 16.5% (contribution -7.6 p.p.) and in multi-dwelling buildings the number dropped by 1.6% (contribution -0.7 p.p.).
According to the Eurostat news release, WDA construction output in the EU 27 decreased by 1.3% in August 2010 compared with August 2009. Building construction increased by 0.4% and civil engineering fell by 6.3%. The data for September 2010 will be released by Eurostat on 17 November 2010 (at 11:00 a.m.).
Construction in Q3 2010

In Q3 2010 construction output decreased by 4.8% at constant prices, compared with Q3 2009, working days adjusted construction output fell by 4.4%. Q3 2010 had one working day less compared to Q3 2009. Building construction output fell by 4.4% (contribution -2.9 p.p.) and the civil engineering output registered a decrease by 5.4% (contribution -1.9 p.p.).

The average registered number of employees (excluding agency workers*) in construction enterprises with 50+ employees dropped by 1.8% compared with Q3 2009. Their average nominal wage increased by 2.2% compared with Q3 2009 and reached CZK 28 296.

In Q3 2010 the number of construction orders for construction enterprises with 50+ employees decreased by 0.5%, y-o-y. They booked 10 132 new domestic construction orders. Total value of these orders increased by 22.5%, y-o-y, and made up CZK 56.8 billion; in building construction orders CZK 24.8 billion (contribution +8.6 p.p., increase by 19.1%) and in civil engineering orders CZK 32.0 billion (contribution +13.9 p.p., growth by 25.3%). The increase in the volume of construction orders made was influenced by an unusually low comparison basis from the Q3 2009, when the volume of new orders decreased by 23.6%, y-o-y. However, in comparison with 2008, the value of new construction orders remains low - the volume decreased in the reference period by 6.4% compared to Q3 2008. The average value per new construction order in Q3 2010 was CZK 5.6 mil. and it was by 23.0% higher compared to Q3 2009.
At the end of Q3 2010 construction enterprises with 50+ employees registered 11.1 thousand contracted orders (down by 7.8%). These orders represented a stock of work to be done totalling CZK 158.6 billion (down by 12.0%).

In Q3 2010 the number of building permits granted was down by 9.0%, y-o-y, the planning and building control authorities granted 27 820 building permits; 15 491 permits for new constructions (contribution -5.2 p.p., drop by 9.2%) and 12 329 permits for changes in completed constructions (contribution -3.8 p.p., drop by 8.6%). The number of building permits decreased in all categories of construction compared to 2009.

The approximate value of constructions permitted in Q3 2010 was CZK 110.1 billion (-7.3% compared to Q3 2009). New constructions should see an increase to CZK 80.8 billion (contribution +1.3 p.p., growth by 2.0%). Renewals and enhancements should produce constructions worth CZK 29.3 billion (contribution -8.6 p.p., drop by 25.9%).

Floor area of buildings permitted in Q3 2010 was 1 629.1 thousand m ² (-12.1% in the year-on-year comparison). Floor area of permitted residential buildings dropped (contribution -19.5 p.p., down by 28.2%) and in non-residential buildings it grew (contribution +7.4 p.p., up by 23.7%).

The number of dwellings started dropped by 31.7% in Q3 2010, y-o-y, and reached 7 671 dwellings. The number of dwellings started dropped both in family houses (contribution -3.7 p.p., down by 7.9%) and in multi-dwelling buildings (contribution -26.4 p.p., down by 72.7%). Other categories also recorded a drop in the number of dwellings started (contribution -1.6 p.p., down by 9.5%).

The number of completed dwellings dropped by 15.0% in Q3 2010, y-o-y, and reached 7 415 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 -10.3 p.p., down by 27.5%). Other categories recorded a decrease in the number of completed dwellings (contribution -1.9 p.p., down by 11.5%).

---

Notes:
Contacts:
Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@czso.cz
Data source: direct CZSO surveys
End of data collection: 2 November 2010
End of data processing: 4 November 2010

* 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 contracts of employment. Data on the registered number of employees in construction also exclude agency workers, who have contracts of employment, however, not within the construction.

Published: 08.11.2010
The data are valid as of the release date of the publication.