Construction output in the Czech Republic decreased by 0.8% in November compared to the same month in the previous year, following a 1% increase in October. Both segments of the industry, ground construction (including residential and non-residential buildings) and civil engineering (such as roads, telecoms, and energy networks), saw similar declines of 0.8% and 0.9% respectively. On a month-to-month basis, construction output fell by 0.3%. This information was provided by the Czech Statistical Office on Friday. Prior to July 2022, construction sector production had been growing for 14 months, but has gradually slowed down since March. In November, building authorities issued 6,975 building permits, a 6.2% decrease compared to the previous year. The number of dwellings started in November increased by 3.9% to 3,377, while the number of completed dwellings rose by 33.4% to 4,423. The average number of registered employees in the construction industry was up 0.3% year-on-year, and their average gross monthly wages increased by 10.7% over the same period.

The chief economist at BHS, Štěpán Křeček, predicts that the construction sector will see fewer new housing projects started this year and that some projects may be delayed due to the current weak economic conditions. Křeček stated that the construction industry is a cyclical sector that is particularly affected by recessions and therefore it is likely that we will see fewer new starts in the industry this year, although projects that have already begun may still be completed.

Article by Prague Forum