Construction sector output has plummeted to lows not seen since 2003, and there is no prospect for improvement in the short term, writes the economic daily Hospodářské noviny. The sector has been on the downward slide already for five years since the crisis hit. In 2012 the output dropped by 6.5 percent y-o-y, having lost one fifth of its output since 2008.
Observers warn however, that construction output has not yet hit rock bottom, and that a number of smaller businesses could still go bust this year. Civil engineering has fallen the most – by 13.6 percent y-o-y – reflecting the lack of public orders in road and rail infrastructure. Public orders dropped by 20 percent y-o-y in 2012, with no large projects having been started. Whether the country will have sufficient resources to utilize available EU funds also remains to be seen.
