Construction output in the Czech Republic in March slowed down the year-on-year decline to 3.1 percent. In February, it decreased by 11 percent, which was the most significant year-on-year decline since July 2016. It was 3.1 percent higher month-on-month. As in previous months, the March reduction was due to building construction, which includes the construction of flats, offices or warehouses. On the contrary, civil engineering, ie especially transport constructions, has increased. Year-on-year, fewer flats began to be built, but significantly more were completed than last year, according to data published today by the Czech Statistical Office (CSO).
The decline in construction output statistics recorded not only the first three months of this year, but for most of last year – construction output grew in 2020 only in January to March. Just last March, an epidemic of covid-19 broke out in the Czech Republic, which has since restricted the movement of people, trade or services.
Production in building construction decreased by 5.7 percent compared to the same month last year after adjusting for working days in March, civil engineering increased by 6.5 percent year on year.
“After a frosty February, companies started the construction season in March and production recorded a decent result,” commented CZSO Petra Cuřínová.
Construction output for the entire first quarter of this year was 2.1 percent higher in real terms compared to the fourth quarter of 2020. It fell by 6.1 percent year on year, statistics said. In the three months of this year, building construction decreased by 8.5 percent compared to the same period last year, while civil engineering recorded a year-on-year growth of 3.2 percent.
In March this year, building authorities issued 7,437 building permits, up 19.5 percent year-on-year. The approximate value of these constructions reached 36.6 billion crowns and in comparison with the same period of 2020 it increased by 25.8 percent.
Year-on-year, 2.1 percent fewer dwellings were started, namely 2,881. On the other hand, the number of completed dwellings increased significantly, by 51.9 percent to 3,450.
“The area of building permits and housing construction was partly affected by the low base from March 2020, when due to the epidemic it faced limited activity of some building authorities and reduced interest of builders,” the statistical office commented on the results.
This March also brought a decrease in the average registered number of employees in the construction industry compared to last year by two percent. However, the average gross monthly wage of these employees increased by 4.6 percent year on year.
Source: CSO and CTK
