Czech Construction Production Increases After Several Months of Decline

The Czech construction industry has experienced a boost, with production increasing by 1% yearly in June. This comes after four months of decline, and ground and engineering construction increased. The Czech Statistical Office reported that construction production was also up by 2.5% on the monthly comparison.

In the earthworks construction sector, including residential and non-residential properties, production increased by 0.7%. Meanwhile, engineering construction, which involves constructing roads and telecommunication and energy networks, saw a year-on-year production increase of 1.6%.

Despite the recent upturn, the number of building permits issued by construction authorities fell by 8.7% year on year, with just 6,759 permits issued. The value of permitted construction projects also decreased by 15% to 44 billion Czech koruna, partly due to a high base comparison from the previous year.

Petra Cuřínová, Head of the Construction and Housing Statistics Department at the Czech Statistical Office, commented that the decrease in permitted construction projects was primarily due to the construction of a large logistics center approved in the previous year.

Although the rate of new building projects has decreased, the number of completed construction projects increased by 4% yearly, with 2,469 units completed in June.

The average number of employees in construction firms with 50 or more workers decreased by 0.4% yearly, while the average monthly gross wage rose by 9.9%.

This recent boost in the construction industry is good news for the Czech economy, which has been hit hard by the COVID-19 pandemic. If this trend continues, it could be essential to the country’s economic recovery.