The Czech construction industry kicked off 2025 with an impressive 8.2% year-on-year growth in January, according to the Czech Statistical Office (ČSÚ). This marks the third consecutive month of growth, following December’s robust 10.8% increase.
Both major sectors demonstrated positive momentum, with building construction rising by 8.7% and civil engineering projects, including roads and utility networks, growing by 6.9%. However, the estimated value of newly permitted construction projects reached 28.7 billion crowns, showing a 28.7% decrease year-on-year, primarily due to fewer building permits being issued.
The housing sector faced some challenges, with new housing starts dropping by 27% to 2,553 units, while completed housing units fell by 41% to 1,260 compared to the previous year. Employment in the sector remained relatively stable, with a slight 0.2% increase in workforce numbers, while average gross monthly wages rose by 5.9%.
However, Petr Dufek, Chief Economist at Creditas Bank, cautions against reading too much into January’s figures. He notes that the strong percentage growth partly reflects a low comparative base from the previous year, and January typically sees reduced activity due to weather conditions. Despite these caveats, construction output is expected to show modest growth this year, particularly following two years of decline.