Construction production grew 11.9% y/y in real numbers and was 0.1% lower m/m after excluding seasonal influences. Production in building construction increased 10.3% y/y and production in civil engineering was 15.8% higher. Building authorities issued 9.0% fewer building permits and their approximate value dropped 3.3%. A total of 5.9% fewer flats started to be constructed and 21.6% more flats were completed. The average number of staff in companies with 50 or more employees in the construction sector was 2.1% lower. The average gross monthly nominal wage of the employees was 8.3% higher and totalled CZK 36,849, according to information provided by the Czech Statistical Office.
Analysts: Construction sector to keep double-digit growth
The results of the construction production in the Czech Republic should remain positive at least until the end of 2018 due to the investment activity of public and private investors, favorable weather and full workforce assignment. In reaction to the data of the Czech Statistical Office, this statement was made by Václav Matyáš, President of the Association of Building Entrepreneurs. The chief economist of BH Securities, Štěpán Křeček, expects that the lack of flats in big cities will continue in the years to come. Although real estate prices are rising, construction is falling short of expectations. Komerční Banka economist Jana Steckerová expects the construction industry to grow by 11.1% for the whole of 2018. In 2019, the sector will slow down to 5.1%.