Construction Production in July Decreased by 2.1 Percent

The Czech Republic’s construction production decreased by 2.1 percent in July year-on-year. The monthly decrease was even more significant, with output down 3.8 percent. The Czech Statistical Office (ČSÚ) released the data on Wednesday. The decline was most pronounced in the segment of land construction.

In June, after four consecutive declines, construction saw a year-on-year increase of one percent and a monthly increase of 2.5 percent. However, in the first summer month, it returned to a decline.

“Construction production in July fell below last year’s level, after a promising June result, with a year-on-year decline of 2.1 percent. The decline occurred in both segments, with land construction contributing more,” said Petra Cuřínová, head of the construction statistics and housing construction department at the ČSÚ. Production in land construction decreased by 2.5 percent, and engineering construction fell by 1.3 percent year-on-year.

The decline in construction production is a cause of concern for the Czech Republic’s economy, which has been hit hard by the COVID-19 pandemic. The construction sector, which accounts for a significant portion of the country’s GDP, has been experiencing a slowdown. The decrease in construction production can be attributed to the pandemic’s impact on supply chains and the overall economy.

The Czech government has introduced several measures to boost the construction sector, including a subsidy program for renovating apartment buildings and constructing energy-efficient buildings. However, it remains to be seen whether these measures will be enough to counter the effects of the pandemic on the sector.

The decline in construction production is also challenging for the Czech Republic’s sustainable development goals. The country has set a target of reducing greenhouse gas emissions by 40 percent by 2030. The construction sector is critical in achieving this target, as it is responsible for a significant portion of the country’s emissions.