<CZSU> Construction output in June fell by 2.8 percent </CZSU>

Prague - Construction output in June, at constant prices, decreased by 2.8 percent year-on-year. Compared to the previous month, it was lower by 0.2 percent. This was announced today by the Czech Statistical Office. The year-on-year decline was mainly attributed to the reduction in new construction in ground-building, whereas a higher volume of work was recorded by statisticians in repairs and maintenance, particularly in transport infrastructure.
    "In addition to the industry with poor results, construction can boast similarly this time," said ČSOB analyst Petr Dufek. According to him, however, the uneven flow of invoices reflected more in the numbers than the actual decline in construction activity. "Therefore, it does not make sense to overestimate the weak results and rather wait for further figures. The inflow of money into construction does not wane, especially as the Czech Republic is slowly but surely learning to work with European funds," added Dufek.
    The indicative value of buildings permitted in June increased by 43.3 percent year-on-year to 40.6 billion CZK. New construction will create buildings valued at 32 billion crowns, which represents more than a half increase. "The number of building permits has been increasing for three consecutive months at a double-digit pace, while the crown value of planned projects has also sharply risen," stated the ČSOB analyst.
    For new buildings for the environment, the indicative value of building permits increased by more than three times, for other buildings about twice, for residential buildings by 46 percent and for non-residential by 21.5 percent. "The increase in the indicative value for buildings for the environment was driven by a very low year-on-year comparative base, while for other buildings it involved financially costly road and highway constructions," stated the Czech Statistical Office.
    Construction work according to supply contracts for companies with 20 or more employees year-on-year decreased by 3.4 percent in constant prices. New construction, reconstruction, and modernization decreased by 5.9 percent, with ground-building dropping by eight percent and engineering construction being lower by 2.5 percent. Construction work abroad decreased by 14.5 percent. Repairs and maintenance recorded an increase of 22 percent.
    Builders see further development positively. "Several significant new tenders for transport constructions have been announced that will undoubtedly shake up the statistics," said Skanska CS spokesperson Ondřej Šuch to ČTK.
    The number of employees in construction companies that had 20 or more people decreased by 1.2 percent year-on-year in June. The average nominal monthly wage increased by 13 percent to 23,860 CZK, and the average hourly wage rose by 13.3 percent to 155 CZK.
    Construction authorities issued 11,083 building permits in June, which is a year-on-year increase of 15.9 percent. Of these, 6,311 permits were for new buildings and 4,772 permits for changes to completed buildings.
    Construction authorities permitted the construction of 4,513 apartments, representing a year-on-year increase of 34 percent. Of this, new construction will create 3,976 apartments and changes to completed buildings will create 537 apartments. The average floor area of apartments in new construction was 124.7 square meters with an indicative value of 20,300 CZK per square meter.