Construction - October 2010

Decline in the construction output moderated

In October 2010 the seasonally adjusted construction output increased by 1.2%, month-on-month (m-o-m), and decreased by 1.4%, in the year-on-year (y-o-y) comparison. The planning and building control authorities granted by 5.7% less building permits, y-o-y and the approximate value of permitted constructions increased by 15.9%, y-o-y. The number of started dwellings fell by 25.4%, y-o-y and the number of completed dwellings grew by 11.5%, y-o-y.

In October 2010 the construction output decreased by 1.4% at constant prices, y-o-y; when working days adjusted the construction output dropped by 0.2%. October 2010, compared to the same month of the previous year, was by one working day shorter. The seasonally adjusted construction output was by 1.2% higher, month-on-month in October 2010. The building construction output rose by 2.3% (contribution +1.4 percentage point) and the civil engineering output decreased by 7.4% (contribution -2.8 p.p.).

The average registered number of employees (excluding agency workers*) in construction enterprises with 50+ employees dropped by 0.4%, y-o-y in October 2010. Their average monthly nominal wage grew by 7.8%, y-o-y and reached CZK 29 194.

In October 2010 the number of building permits granted was down by 5.7%, y-o-y; the planning and building control authorities granted 9 380 building permits; 5 279 building permits for new constructions (contribution -4.8 p.p., drop by 8.4%), and 4 101 building permits for modifications to completed constructions (contribution -0.9 p.p., drop by 2.1%).

The approximate value of constructions permitted in October 2010 accounted for CZK 40.2 billion and increased by 15.9% compared to the corresponding period in 2009. New constructions registered an increase in the approximate value of permitted constructions to CZK 29.3 billion (+14.2 p.p., growth by 20.2%), mostly due to building permits granted for costly structures of transport infrastructure, office and administration buildings, and structures for energy industry (namely photovoltaic farms and stations). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 10.9 billion (contribution +1.7 p.p., growth by 5.8%).

The number of dwellings started dropped by 25.4%, y-o-y and attained the number of 2 023 dwellings. The number of dwellings started in family houses decreased by 23.8%, y-o-y (contribution -16.0 p.p.). The number of dwellings started in multi-dwelling buildings grew by 16.7% (contribution +1.4 p.p.). This growth was affected by the unusually low comparative basis of October 2009 when the number of started dwellings in multi-dwelling buildings fell deep by 79.2%. Yet if compared to the year 2008 the number of dwellings in this category has still remained low – their number dropped by 75.7% compared to October 2008.

The number of completed dwellings rose by 11.5%, y-o-y in October 2010 and reached 3 495 dwellings. The number of completed dwellings in family houses increased by 13.1% (contribution +7.8 p.p.) and the number of completed dwellings in multi-dwelling buildings grew by 1.8% (contribution +0.5 p.p.).
According to Eurostat the WDA (working days adjusted) construction output in the EU 27 decreased by 3.6%, y-o-y in September 2010. Building construction shrank by 4.6% and civil engineering swelled by 2.6%. Eurostat shall release the data for October 2010 on 17 December 2010 (at 11:00 a.m.).

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Methodological note:
Contact person:
Petra Cuřínová, phone: (+420) 274054199, e-mail: petra.curinova@czso.cz
Data source: direct surveys of the CZSO
End of data collection: 1 December 2010
End of data processing: 3 December 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 contract of employment. Data on the registered number of employees in construction also exclude agency workers, who have contract of employment, however, in other activity than construction.

Published: 07.12.2010
The data are valid as of the release date of the publication.