Construction output rose by 7.7% in September against September 1999, after an August increase by 8.5%. Construction output, adjusted for the number of working days, increased by strong 10.3% (the highest figure of the year!). Productivity growth and wage development serve even better picture. Average nominal wages increased by 4.1%; real wages stagnated while productivity jumped by 12.6%. However, an increase of productivity was partially enabled by a decrease in the number of employees in the construction sector by 4.4%, year-on-year, in September.
The most important factors behind the recovery of the construction sector in the Czech Republic are capital expenditures of the state budget and a massive inflow of the foreign direct investment. Owing to these factors construction works on infrastructure are strongly rising and thus help to achieve high figures like today’s one. Construction works performed abroad are rising as well, thanks to the economic recovery in the EU countries. The housing is still the weakest side. However, a situation is slightly getting better. In September, the number of apartment planning permissions increased by 2.7%, year-on-year.
We estimate an increase by 4% in the construction output in 2000.