Construction in the Czech Republic fell sharply in February, the most significant drop since July 2016

Prague - Production in the construction industry in the Czech Republic fell by 11 percent year-on-year in February. This is the most significant year-on-year decline since July 2016. This is based on data published today by the Czech Statistical Office (CZSO). In January, the year-on-year decline in construction production, unadjusted for calendar effects, was 7.7 percent, and 5.2 percent after adjustment. Statisticians also recorded a decline in most months of last year; construction production only grew from January to March in 2020. In March of last year, the COVID-19 epidemic began in the Czech Republic, which has since restricted people's movement, trade, and services.

The decline in construction in February was driven by a drop in production in building construction, which decreased by 13.8 percent compared to the same month last year. Conversely, the production of engineering construction, which includes projects such as roads and railways, slightly increased year-on-year, by 0.8 percent. "Engineering construction was at the level of last February, which is a very good performance given the high comparison base and significantly colder weather," said Radek Matějka, director of the Department of Agriculture and Forestry, Industry, Construction, and Energy Statistics at the CZSO.

The February decline in production was the same when adjusted for calendar effects and unadjusted. A similarly high decline in construction production was also recorded last December, reaching 11.4 percent after adjustment. Without adjustment, the decline in December was 9.1 percent.

Construction offices issued 6,144 building permits this February, which is a 3.3 percent decrease compared to last February. However, the indicative value of the buildings that received permits increased year-on-year by 30 percent to 33 billion crowns. According to the CZSO, the increase in value is mainly due to the permits for several larger transportation projects. "Regardless of billion-crown projects, the indicative value would have increased by almost five percent," added Petra Cuřínová, head of the Department of Construction and Housing Statistics at the CZSO.

The number of initiated apartment constructions significantly decreased year-on-year in February, by 8.9 percent to 2,941 apartments. The most significant drop was in the construction of apartments in family houses, which decreased by 28.5 percent. For apartment buildings, the decline was only 0.9 percent.

This February, the number of completed apartments also decreased compared to last year, by 15.6 percent to 2,570 apartments. The decline in the completion of apartments was more pronounced in the category of apartment buildings, where the number of completed apartments nearly halved. According to the CZSO, this significant drop was due to a high comparison base from February 2020. Conversely, the number of completed apartments in family houses increased by 4.8 percent year-on-year this February.

According to statisticians, February also brought a 1.8 percent decrease in the average registered number of employees in construction compared to last year. The average gross monthly wage of these employees, however, increased by 3.5 percent year-on-year.