The decline in construction in the Czech Republic has accelerated, dropping by 7.6% in May.

Prague - The decline in construction output in the Czech Republic accelerated. In May, it decreased by 7.6 percent year-on-year from April's 4.6 percent. Civil engineering, which includes the construction of apartments, offices, or warehouses, fell again. On the other hand, engineering construction, which largely encompasses transportation infrastructure, grew, but at a significantly slower pace than in previous months. This is evident from the data published today by the Czech Statistical Office (CSÚ).

"While civil construction has been declining for several months, the slowdown in engineering construction in May is a novelty. Larger companies have managed to maintain their dynamics, but smaller firms and sole traders were significantly below last year's May levels. Conversely, the situation in the area of building permits and residential construction has stabilized,” commented the results the head of the construction and residential construction statistics department at CSÚ, Petra Cuřínová.

The output of civil engineering decreased by 11 percent compared to last May, which is roughly the same as a month earlier. In engineering construction, it was 1.2 percent higher year-on-year in May, but it rose by 13.5 percent in April.

Building authorities issued 2.8 percent fewer building permits year-on-year, totaling 7,625. However, compared to the previous year, construction of more apartments began, and more were also completed. The number of started apartments increased by 0.8 percent to 3,376, and completed apartments rose by 15.3 percent to 2,943.

Year-on-year data on construction are adjusted. Month-on-month, construction output, after excluding seasonal influences, was 2.9 percent lower.