Statistics will publish the May results of construction and industry today

Prague – The Czech Statistical Office (CZSO) will inform today about how the Czech industry and construction fared in May. In April, industrial production increased by 1.5 percent year-on-year, thus accelerating growth from 0.9 percent in March after four months of slowdown. Similarly, construction output also accelerated its growth to 7.7 percent from 6.4 percent a month earlier.

According to analysts, the Czech industry was paradoxically helped in April by the conflict in the Middle East, as it motivated companies to stock up on key production inputs before disruptions in their supply occurred. However, economists predict that the war poses risks for further developments. They anticipate the dampening effect of disrupted supply chains and worsened consumer and investment sentiment to materialize.

According to economists, the significant share in the current good condition of the construction sector comes from increased apartment construction. In April, 5,100 apartments began construction in the Czech Republic, which is nearly 90 percent more year-on-year. However, the initiated projects, according to experts contacted by ČTK, will not improve the availability of housing in the Czech Republic. The number of completed apartments decreased by about a tenth to 2,582.

Further developments in construction will be hampered, among other things, by the reduced ability of construction companies to execute contracts in full and within the agreed timeline. The sector is facing a shortage of workers, and this shortfall could be exacerbated by the further departure of Ukrainian workers. Construction companies are starting to work with the scenario that the war in Ukraine will eventually end, Hauk noted.