The Czech Construction Industry Experienced an 8.3% Decline

The construction industry in the Czech Republic has witnessed a significant setback. In March, the industry experienced a year-on-year decline of 8.3 percent. Compared to February, the sector’s performance was lower by 7.9 percent, indicating a challenging phase.

Construction output, especially in the building construction sector, has decreased 11.1 percent year over year. In contrast, engineering construction recorded a marginal decline of 0.9 percent. These figures illustrate the concern about the downturn in construction activities.

Petra Cuřínová, the head of the construction and housing statistics department of the Czech Statistical Office, provides further insight. She states, “In March, construction output declined year-on-year by 8.3 percent, and a significant month-on-month decline was also recorded. While the year-on-year decline was entirely due to construction, engineering buildings contributed more to the month-on-month decline.”

Interestingly, the estimated value of issued construction permits increased by 49.1 percent, reaching 66 billion crowns. This growth was significantly influenced by the permission of six buildings with budgets exceeding one billion crowns. However, after deducting these, the estimated value would decrease by 7 percent.

Radek Matějka, the director of the statistical office’s Department of Agriculture and Forestry, industry, construction, and Energy Statistics, explains this. He remarks, “This growth was fundamentally influenced by the permission of six buildings with budgets over one billion crowns. After deducting them, the estimated value would decrease by 7 percent.”

Despite this, thanks to above-average temperatures in February, the construction industry strengthened year-on-year by 3.6 percent. This indicates that external factors like weather conditions can significantly influence the construction sector’s performance.