Construction - September 2011

Decline in the number of new orders and employment continued

In September 2011 the construction output dropped by 6.7%, year-on-year (y-o-y), in real terms. When seasonally adjusted the construction output was higher by 0.3%, month-on-month (m-o-m). The planning and building control authorities granted by 4.4% more building permits, y-o-y, and the approximate value of permitted constructions dropped by 15.9%, y-o-y. The number of started dwellings was up by 2.4%, y-o-y, and the number of completed dwellings plummeted by 41.5%, y-o-y.

In September 2011 the construction output decreased by 6.7%, y-o-y, in real terms; if seasonally adjusted it was by 0.3% higher, m-o-m. The production in building construction fell by 7.3% (contribution -5.0 percentage points (p.p.)), y-o-y, and the production of civil engineering construction dropped by 5.5% (contribution -1.7 p.p.), y-o-y. Compared to the same period of 2008, the year of boom, the construction output declined by 14.9% since the beginning of 2011 till the end of September 2011.

The average registered number of employees*) in construction enterprises with 50+ employees fell by 7.7%, y-o-y, in September 2011. Their average monthly nominal wage increased by 3.4%, y-o-y, and reached CZK 28 485.

In September 2011 the number of building permits granted increased by 4.4%, y-o-y; the planning and building control authorities granted 9 456 building permits. The approximate value of the permitted constructions attained CZK 26.9 billion and dropped by 15.9% compared to the same period of 2010. The value of the constructions permitted declined mostly in new construction work.

The number of dwellings started in September 2011 grew by 2.4%, y-o-y, and attained the number of 2 494 dwellings. The number of dwellings started in family houses increased by 10.4%, year-on-year. The number of dwellings started in multi-dwelling buildings fell by 5.7%.

The number of completed dwellings plummeted by 41.5%, y-o-y, in September 2011 and was 1 968 dwellings. The number of completed dwellings in family houses decreased by 14.7%. The number of completed dwellings in multi-dwelling buildings plummeted by 73.9%, yet this rapid drop was, in part, caused by a high comparison basis of September 2010.
Construction in Q3 2011

In Q3 2011 the construction output decreased by 8.4%, y-o-y, in real terms. The building construction production decreased by 5.3% (contribution -3.5 p.p.) and the civil engineering construction production recorded a y-o-y decline by 14.6% (contribution -4.9 p.p.).

The average registered number of employees*) in construction enterprises with 50+ employees dropped by 7.2%, y-o-y in Q3 2011. Their average monthly nominal wage increased by 4.3%, y-o-y and reached CZK 29 428.

In Q3 2011 the number of building orders of construction enterprises with 50+ employees grew by 2.4%, y-o-y; the enterprises received and concluded 11 327 orders in the Czech Republic. The total value of the orders dropped by 32.0%, y-o-y and was CZK 41.3 billion. The building construction orders were for CZK 19.1 billion (drop by 29.4%) and those for civil engineering constructions were for CZK 22.2 billion (drop by 34.0%). The average value of a newly concluded construction order in Q3 2011 was CZK 3.6 million and was by 33.6% lower, y-o-y.
By the end of Q3 2011 construction enterprises with 50+ employees had 12.4 thousand orders (decline by 2.6%) contracted and these orders represented the stock of so-far not implemented construction works at the total value of CZK 158.4 billion (decrease by 5.7%).

In Q3 2011 the number of building permits granted was up by 2.1%, y-o-y; the planning and building control authorities granted 28 396 building permits. Building permits granted for new constructions accounted for 15 983 (growth by 3.2%) and there were 12 413 building permits granted for implementation of modifications to already completed structures (increase by 0.7%).

The approximate value of constructions permitted in Q3 2011 accounted for CZK 78.4 billion and plummeted by 28.8% compared to the same period of 2010. New constructions registered a decrease in the approximate value of permitted constructions to CZK 49.9 billion (plunge by 38.2%). Implementation of modifications to already completed structures should give birth to structures of the value of CZK 28.5 billion (decrease by 2.7%).

The floor area of new buildings permitted in Q3 2011 was 1 389.7 thousand m ², which means a decline by 8.5% compared y-o-y. The floor area of permitted residential buildings decreased by 1.2%, and that of non-residential buildings dropped by 17.4%.

The number of dwellings started in Q3 2011 decreased by 7.4%, y-o-y, and attained the number of 7 104 dwellings. The number of dwellings started in multi-dwelling buildings year-on-year dropped by 12.0%; in family houses the number of dwellings started increased by 0.4%.

The number of completed dwellings dropped by 10.8%, y-o-y, in Q3 2011 and was 6 616 dwellings. The number of completed dwellings decreased both in multi-dwelling buildings (drop by 22.5%), and in family houses (decrease by 3.1%).
According to Eurostat the WDA (working days adjusted) construction output in the EU27 increased by 0.6%, y-o-y, in August 2011. Building construction decreased by 0.1% and civil engineering construction increased by 3.2%. Eurostat shall release the data for September 2011 on 17 November 2011 (at 11:00 a.m.).

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Methodological Note:
Responsible head: Radek Matějka, phone: (+420) 27405289 4, 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: 1 November 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: 7 December 2011

Published: 07.11.2011
The data are valid as of the release date of the publication.