Czech Republic: Continuing growth of new civil engineering orders in the 3rd quarter
04/12/2008 - 12:02
In Q3 2008 the total value of domestic new construction orders grew by 15.8% year-on-year and reached CZK 76.1 billion. At the end of Q3 2008 observed construction enterprises recorded 16.2 thousand domestic orders worth CZK 209.4 billion.
New construction orders
In Q3 2008 observed construction enterprises booked 18 994 new construction orders (-17.7% year-on-year) worth CZK 76.1 billion (+15.8%).
The value of new construction orders for new construction, reconstruction and modernisation increased by 17.5% year-on-year and reached CZK 69.1 billion. The value of construction orders:
* grew by 39.3% in civil engineering (contribution 14.1 percentage points);
* grew by 39.7% in non-residential buildings not designed for production (contribution 8.3 p.p.);
* grew by 87.2% in water management works (contribution 1.2 p.p.);
* decreased by 14.6% in residential buildings (contribution -3.1 p.p.);
* decreased by 14.7% in non-residential buildings designed for production (contribution -3.0 p.p.).
Like in Q2 2008, the value of new construction orders in civil engineering contributed most to the growth. These orders included mainly financially demanding transport infrastructure projects supported from the European Structural Funds.
Average value per domestic new construction order reached CZK 4.0 million (CZK 5.2 million per public order and CZK 3.1 million per private order) and was up by 40.8% in comparison to Q3 2007. Out of the total value of new construction orders amounting to CZK 76.1 billion, public orders made up CZK 42.8 billion (56.2%) and private orders CZK 33.3 billion (43.8%). By number of orders, private orders prevailed and made up 56.8% compared to 43.2% of public orders.
Construction orders by value and period of completion
The total value of construction orders reached CZK 209.4 billion at the end of Q3 2008. In comparison to the end of Q2 2008 the value of construction orders decreased by 1.9%.
In total, medium and large construction enterprises (100+ employees) accounted for 87.4% of the value of construction orders. Enterprises with 1000+ employees had the biggest share (52.2%) in the total value of construction orders registered at the end of Q3 2008.
Out of the total number of construction orders recorded in Q3 2008, roughly four fifths will be completed within 6 months and 93.9% within a year. From the total value of construction orders, nearly a half will be completed within 6 months and 70.5% within a year. The value of construction orders recorded on 30 September 2008 amounting to CZK 209.4 billion represented an about eight months reserve of work for construction enterprises.
Orders cancelled
In Q3 2008, 178 construction orders worth CZK 1.4 billion were cancelled.
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