Czech construction output falls year-on-year in September

Czech Republic’s construction output dropped in September in real terms. According to Czech Statistical Office, the construction output fell 7.4 percent in year-on-year terms. On a sequential basis, the seasonally adjusted construction output rose 0.1 percent in September. Building construction output declined 1.2 percent, negatively contributing 0.7 percentage points on annual basis. Meanwhile, civil construction fell 17.8 percent, subtracting 6.7 percentage points in annual terms.

The average registered number of employees in construction firms dropped 2.8 percent annually in September. The average gross monthly nominal wage rose 2.7 percent year-on-year, reaching CZK 33,881.

Meanwhile, the number of building permits dropped 4.4 percent annually in the month. A total of 7,155 building permits were granted by the planning and building control authorities. The estimated value of the granted constructions attained CZK 20.5 billion and dropped 11.5 percent year-on-year.

For the third quarter, the construction output dropped 9.8 percent annually in real terms. After adjusting for working days, it dropped 9.4 percent. The third quarter of 2016 was one working day shorter as compared with the same period of the previous year. The seasonally adjusted construction output dropped 0.9 percent as compared with the second quarter. Building construction output fell 4 percent sequentially, subtracting 2.6 percentage points, whereas civil construction output fell a recorded 19.7 percent, negatively contributing 7.2 percentage points.

The number of building orders of construction rose by 5.2 percent year-on-year in the third quarter. The total value of the orders dropped 9.4 percent to CZK 50.9 billion. The average value of new concluded building order dropped 13.9 percent year-on-year to CZK 3.2 million.