Czech Construction Industry Reports a 2.6% Decline

The Czech Republic’s construction industry experienced a 2.6% decline in production the previous year, starkly contrasting to the 2.6% growth witnessed last year. The most significant drop was recorded in engineering construction, which includes building roads, telecommunications, and energy networks, with its output falling by 4.7%.

In terms of building construction, a decrease of 1.8% was observed. However, the overall decline in construction decelerated to 4.6% in December from 6.5% in November. Despite the annual decrease, month-on-month production was up by 1.3%, according to data released by the Czech Statistical Office (ČSÚ).

For most of the year, construction production was down on a year-on-year basis. Growth was recorded only twice in January and June, with increases of 5.3% and 0.9%, respectively. The sharpest annual decline was recorded in April, down by 7.1%.

According to the statistics, the construction authorities issued 77,399 building permits in 2023, representing an annual decline of 10.1% and the lowest value for this period since 2015. The estimated value of permitted constructions rose by 16.8% annually to CZK 601.7 billion.

In contrast to the overall decline in construction production, building construction production decreased by a smaller 1.3% in December. Engineering construction struggled with a higher comparative base and fell by 12.5%. The number of completed flats decreased by 3.2% to 38,082.

The article concludes with a snapshot of employment and wages in the sector. The average recorded number of employees in construction companies with 50 or more employees increased by 1.1% year-on-year in December. The average gross monthly wage increased by 2.3% over the same period.