The positive numbers coming from the Czech construction sector continued in April. "The construction sector is the fastest growing sector in the Czech economy this year," said Komerční banka analyst Jan Vejmělek. He said construction was being spurred on by foreign investments as well as the public sector, which is trying to lure in further foreign investment by building new infrastructure.Construction output increased year on year by 16.1 percent in April, pushed forward by all types of construction. "The boom in construction is continuing," commented David Marek from Patria Finance. He believes construction underwent a tough consolidation period in which a drop in demand and competition forced lots of firms to leave the sector. But the number of workers in construction ceased falling in March.
The Czech Statistical Office reported continued strong growth in output and labor productivity in construction in April. While output was up 16.1 percent over April of 2000, the figure was reduced to 14.5 percent after taking into account the number of working days.
Construction offices had issued 39,074 construction permits as of the last day in April, which was 6.9 percent off the 2000 pace. But the estimated value of the permits rose 4.8 percent to Kč 66 billion. The number of residential construction permits rose by 80 to 12,443, of which a fourth were for new construction and the remainder were changes to completed structures.
The number of building permits for housing issued in the month of April itself rose 43 percent over the previous April, with the biggest increases coming from Prague and Zlín. Construction offices issued permits for 2818 dwellings in April, with a combined estimated value of Kč 4.6 billion. The rapid growth in the number and value of new dwellings was influenced by the construction of more apartment buildings in Prague and in Zlín.
The average wage in construction reached Kč 13,935 in April, a 10.3 percent rise over last April. At the same time, labor productivity rose 15.7 percent and unified wage expenses fell by 4.7 percent. While all types of construction saw growth, it was primarily infrastructure construction of an investment nature that paved the way. The growth of construction output was mainly thanks to companies with more than 1000 workers (that group experienced growth of 28.6 percent) as it represents 20 percent of all output. Employment in the construction sector exceeded figures set a year ago in April, though a decline was seen in companies with more than 500 employees. (čtk)