SÚ: Construction output in the Czech Republic in July increased by 10.1 percent year-on-year

Prague - Construction output in the Czech Republic rose by 10.1 percent year-on-year in July. This marks the ninth consecutive year-on-year growth, although the growth rate has slowed down; in June, after revision, it was 15.2 percent. Production in civil engineering rose by 9.2 percent year-on-year in July and in engineering by 11.5 percent. This was reported today by the Czech Statistical Office (ČSÚ). Month-on-month, construction output was up by one percent.

Construction output has grown year-on-year in every month this year. Statisticians have recorded double-digit year-on-year growth for the third consecutive time; in May, it was 13.6 percent.

"The construction sector benefits from last year's extremely low comparison base, expedited permitting processes, and initiated government investments, especially in transportation infrastructure," said Petr Smutný, a partner at PwC for restructuring, commenting on the construction output results.

The government investments are also considered the main reason for the growth of construction production by the chief economist of Banka Creditas, Petr Dufek. "Construction is thriving mainly due to infrastructure projects. So as long as there is something to build, it will have a positive outlook. Only funding for construction in 2026 needs to be found," he stated.

The indicative value of construction projects for which building permits were issued in July reached 54.2 billion crowns, which is 37.9 percent more year-on-year. "The year-on-year increase in the indicative value of buildings was contributed by the approval of the reconstruction of a large transport project worth billions of crowns. However, even after modeling out buildings with budgets over one billion crowns, the indicative value would still be above the level of July last year," noted Radek Matějka, the director of the Department of Statistics for Agriculture and Forestry, Industry, Construction, and Energy at ČSÚ.

In July, construction of 2,628 apartments began, which is 9.2 percent less than in the same month last year. The number of completed apartments fell year-on-year by 13.4 percent to 2,353 apartments.

Analysts consider housing construction to be insufficient. "To stabilize the housing market, it is necessary to significantly increase the construction of new apartments and family houses. Last year, 30,000 apartments were completed in the Czech Republic. That's not enough, and the situation in the real estate market continues to worsen," said Igor Forberger, managing director of the Xella group, to ČTK.

The average recorded number of employees in construction increased by 0.6 percent year-on-year in July, and their average gross monthly salary rose by 3.8 percent compared to July last year.