In a surprising turn of events, the Czech construction industry’s growth streak came to a halt in February 2024, marking a period of stagnation after three consecutive months of expansion. The Czech Statistical Office (CSU) reports a modest year-on-year increase of just 0.9%, while showing a slight month-on-month decline of 0.6%.
The slowdown appears less concerning when considering the context, as Radek Matějka, Director of Agriculture, Industry, Construction and Energy Statistics at CSU, explains that the stagnation largely reflects a higher comparative base from the previous year.
Despite the overall plateau, both major construction sectors managed to stay in positive territory. Building construction saw a slight uptick of 0.7%, while civil engineering projects, including roads and utility networks, advanced by 1.3%. Perhaps most encouragingly, the estimated value of newly permitted construction projects surged by 30.2% to reach 45.6 billion Czech crowns.
The housing sector presents a mixed picture, with new housing starts jumping by 40% to 2,607 units, while completed homes fell by nearly half to 1,683 units. Employment in the sector remained stable with a marginal 0.2% increase, accompanied by a 4% rise in average gross monthly wages.
Industry experts suggest this period of consolidation might be temporary, pointing to the robust pipeline of approved projects and the continued strength in new housing initiatives. The significant increase in high-value projects – those exceeding one billion crowns – particularly hints at sustained confidence in the sector’s long-term prospects.