Construction production maintained growth last year, up 1.9 percent year-on-year

Construction production in the Czech Republic increased by 1.9 percent year-on-year last year, compared to a 2.4 percent increase a year earlier. The growth was helped by higher output in both civil and structural engineering.

In December alone, the year-on-year decline in the construction sector slowed to 0.2 percent from 0.8 percent in November. On a month-over-month basis, output was 1.2 percent higher. This was revealed by the Czech Statistical Office (CSO).

“Construction output maintained moderate growth in 2022, rising by 1.9 percent in both segments equally. The construction industry continued to struggle with price growth and a shortage of construction capacity during the year,” said Radek Matějka, director of the CSO’s Department of Statistics for Agriculture and Forestry, Industry, Construction, and Energy, commenting on last year’s construction sector results.

According to the statisticians, construction production grew the fastest in the first quarter of last year, up 9.9 percent, thanks to a low comparative base and favorable weather. On the contrary, the construction industry recorded the worst result in the third quarter, when its output fell by 1.7 percent.

For the whole of last year, the authorities issued 86,047 building permits, down 5.4 percent year-on-year. The indicative value of permitted constructions fell by 1.6 percent to CZK 512.8 billion compared to 2021. Construction of 41,546 flats started last year, down 7.7 percent year-on-year. Completed apartments were 14.1 percent higher at 39,460, the most since 2007, statisticians said.

While land and civil engineering construction were up for the whole of last year, only civil engineering, which includes building roads, telecommunications, and power grids, was up in the year’s final month. Year-on-year, output in this sector rose by 8.2 percent.

“The output of civil engineering construction hit a higher comparative base and fell by 3.2 percent,” said Petra Cuřínová, head of the CSO’s Construction and Housing Statistics Department.

The number of building permits issued by the authorities in December fell 15.6 percent year-on-year to 6,700, while the indicative value of permitted buildings rose 8.5 percent to 51.2 billion. According to the CSO, the increase in the meaningful value was caused by the approval of large transportation infrastructure projects. Housing starts were 21.9 percent lower year-on-year in December, at 3,597. The number of completed flats rose by almost a third to 4,786.

The average number of registered employees in the construction industry rose 0.9 percent year-over-year in December, and their average gross monthly wages grew 8.9 percent. For all of last year, construction employees added an average of 0.8 percent year-over-year, and their average gross earnings were up 7.7 percent from 2021.