Saturday, September 20, 2008

Construction Output Also Slowing

In July seasonally adjusted total construction output at constant prices was up by 1.1%, compared with June. In comparison to July 2007, output at constant prices grew by 6.9%. The planning and building control authorities granted 11 055 building permits, i.e. 13.5% more year-on-year than in July 2007. The approximate value of authorised constructions increased by 16.2% year-on-year at non inflation adjusted prices and reached CZK 35.0 billion.

However when adujsted for working days total output rose by 1.8% (July 2008 had three working days more). The fastest growth was recorded in civil engineering, in the areas of new construction, reconstruction and modernisation as well as repair and maintenance. Civil engineering is of course recepient of most of the resources from EU structural funds going to the construction industry.

What we can see from the above monthly chart is that construction activity has gone in waves. We can also see that the latest wave ground to a halt during the spring of 2007. As we can see from the annual index below, construction activity has been rising steadily since 2000. It now remains to be seen for how much longer this sort of pace can be sustained.

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