Construction - March 2010

Year-on-year decline in construction was going on

In March 2010 seasonally adjusted construction output increased by 4.8 %, m-o-m, and decreased by 18.3 % in the year-on-year comparison. The planning and building control authorities granted by 6.3 % less building permits, year-on-year. Approximate value of permitted constructions decreased by 9.2 %. The number of started dwellings fell by 23.4 % and completed dwellings dropped by 1.4 %.

In March 2010 construction output decreased by 18.3 % at constant prices, compared with March 2009, working days adjusted construction output fell by 19.2 %. March 2010 had one working day more compared to March 2009. Seasonally adjusted construction output was 4.8 % up in March, m-o-m. Building construction output fell by 20.7 % (contribution -15.6 p.p.) and the civil engineering output registered a decrease by 11.1 % (contribution -2.7 p.p.).

The average registered number of employees in construction enterprises with 50 or more employees dropped by 5.6 % compared with March 2009. Their average monthly nominal wage increased by 3.4 % compared with March 2009 and reached CZK 27 117.

In March 2010 the number of building permits granted was down by 6.3 %, y-o-y, the planning and building control authorities granted 8 839 building permits. 4 876 building permits were granted for new constructions (contribution -4.8 p.p., decrease by 8.5 %) and 3 963 building permits for changes in completed constructions (contribution -1.5 p.p., decrease by 3.3 %).

The approximate value of constructions permitted in March 2010 accounted for CZK 30.8 billion and compared to corresponding period in 2009 it fell by 9.2 %. New constructions registered an increase in the approximate value of building permits up to CZK 21.4 billion (contribution +0.7 p.p., growth by 1.2 %). Renewals and enhancements should produce constructions worth CZK 9.4 billion (contribution –9.9 p.p., decline by 26.4 %).

The number of dwellings started dropped by 23.4 % compared to March 2009 to reach 2 368 dwellings. The number of dwellings started in family houses dropped by 3.2 %, y-o-y, (contribution -1.6 p.p.). The number of dwellings started in multi-dwelling buildings dropped by 54.7 % (contribution -16.5 p.p.).

The number of completed dwellings dropped by 1.4 % compared to March 2009 and reached 2 885 dwellings. The number of completed dwellings in family houses increased by 2.8 % (contribution +1.3 p.p.) and in multi-dwelling buildings the number dropped by 11.8 % (contribution -4.5 p.p.).
According to the Eurostat news release, WDA construction output in the EU 27 dropped by 10.2 % in February 2010 compared with February 2009. Building construction fell by 10.4 % and civil engineering fell by 5.9 %. The data for March 2010 will be released by Eurostat at 11:00 a.m. on 19 May 2010.
Construction in Q1 2010

In Q1 2010 construction output decreased by 22.0 % at constant prices, compared with Q1 2009. The civil engineering output registered a decrease by 6.4 % (contribution -1.5 p.p.) and the building construction output fell by 26.9 % (contribution -20.5 p.p.).

The average registered number of employees in construction enterprises with 50 and more employees dropped by 7.1 % compared with Q1 2009. Their average nominal wage increased by 2.5 % compared with Q1 2009 and reached CZK 25 070.

The number of construction orders registered by construction enterprises with 50 or more employees in Q1 2010 increased by 1.1 %, construction enterprises booked 6 350 new domestic construction orders. Total value of these orders dropped by 3.3 %, y-o-y, and made up CZK 34.8 billion; building construction orders accounted for CZK 19.0 billion (contribution +6.6 p.p., growth by 14.4 %) and civil engineering orders accounted for CZK 15.9 billion (contribution -9.9 p.p., decline by 18.3 %). Average value per new construction order in Q1 2010 was CZK 5.5 million, i.e. by 4.4 % less compared to Q1 2009.
At the end of Q1 2010 construction enterprises with 50 or more employees registered 8.6 thousand contracted orders (drop by 21.0 %). These orders represented a stock of work to be done totalling CZK 159.5 billion (drop by 26.6 %).

In Q1 2010 the number of building permits granted was down by 7.0 %, y-o-y, the planning and building control authorities granted 23 220 building permits. 12 912 building permits were granted for new construction (contribution -5.6 p.p., decrease by 9.8 %) and 10 308 building permits for changes in completed constructions (contribution -1.4 p.p., decrease by 3,2 %). The number of building permits decreased in all categories of constructions, only building permits granted for environmental constructions increased as compared with 2009.

The approximate value of constructions permitted in Q1 2010 was CZK 81.4 billion and compared to corresponding period in 2009 it dropped by 7.2 %. The approximate value of permitted constructions dropped in almost all categories of constructions. New constructions registered a decrease in the approximate value of building permits down to CZK 55.9 billion (contribution -2.2 p.p., decrease by 3.3 %). Renewals and enhancements should produce constructions worth CZK 25.5 billion (contribution -5.0 p.p., decrease by 14.6 %).

In Q1 2010 floor area of permitted buildings accounted for 1 316.6 thousand m ², which is a decrease by 22.8 % compared to Q1 2009. Floor area of permitted multi-dwelling buildings dropped (contribution -13.9 p.p., decrease by 24.9 %) and in non-residential buildings it dropped too (contribution -8.9 p.p., decrease by 20.0 %).

The number of dwellings started dropped by 28.1 % compared to Q1 2009 to reach 6 272 dwellings. The number of dwellings started dropped both in family houses (contribution -8.9 p.p., decrease by 18.4 %) and in multi-dwelling buildings (contribution -9.4 p.p., decrease by 34.9 %), y-o-y. In other categories, the number of dwellings started dropped too (contribution -9.8 p.p., decrease by 39.3 %).

The number of completed dwellings dropped by 1.2 % compared to Q1 2009 and reached 9 199 dwellings. The number of completed dwellings increased both in family houses (contribution +1.0 p.p., growth by 2.1 %) and in multi-dwelling buildings (contribution +0.5 p.p., growth by 1.4 %). In other categories, the number of completed dwellings dropped (contribution -2.7 p.p., decrease by 16.3 %).

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Notes:
Contacts:
Ing. Petra Cuřínová, phone: 274054199, E-mail: petra.curinova@czso.cz
Source of data: CZSO surveys
End of data collection: 3 May 2010
End of data processing: 5 May 2010

Published: 07.05.2010
The data are valid as of the release date of the publication.