Illustrative stock photo (source: SME)
After seasonal adjustment, total output was 4.9 percent lower than in October 2015, according to the Statistics Office (ŠÚ) data.
“Construction is experiencing a positive growth wave,” Home Credit analyst Michal Kozub said, as quoted by the SITA newswire. “This however does not mean that all previous problems have been forgotten.”
After several years when the situation in the construction sector was poor, construction firms encountered several problems. Thus the current growth “offers a light at the end of a tunnel” to them, Kozub added.
In annual terms, the output carried out by domestic construction companies grew by 15.2 percent in November 2015 to €524.6 million. Its share on the total construction output rose by 0.1 percentage points y/y to 95.4 percent. The domestic output was impacted by a significant growth of works in new construction, renewals and enhancements by 15.2 percent y/y to €380.3 million and by the growth in repairs and maintenance works by 16.4 percent y/y to €140.2 million.
Regarding the structure of the domestic output, new construction, renewals and enhancements constituted 72.5 percent, up by 0.1 percentage points compared to November 2014. The share of repairs and maintenance works rose by 0.3 percentage points to 26.7 percent.
In terms of output specification, the volume of civil engineering works grew by 22.6 percent y/y and the volume of works in construction of buildings by 11.5 percent y/y. Within domestic output, construction of buildings was represented by 63.8 percent and civil engineering works accounted for 36.2 percent.
Non-domestic construction output carried out by construction companies grew by 13 percent y/y. Its share constituted 4.6 percent out of the total output, ŠÚ data suggest.
Over the first eleven months of 2015, construction output amounted to €4.8487 billion, up by 17.1 percent y/y. Domestic output grew by 17.8 percent to €4.6226 billion. The volume of works in new construction, renewals and enhancements rose by 24.5 percent to €3.4557 billion, while repairs and maintenance works rose by 2.8 percent to €1.1262 billion.
Non-domestic output grew by 5.7 percent y/y. In the structure of the domestic output, the share of new construction, renewals and enhancements grew by 4.1 percentage points 74.8 percent, the share of repairs and maintenance works was reduced to 24.4 percent, according to ŠÚ.
The current economic growth opens space for investing into construction, according to Kozub who pointed to the good economic situation and sufficient sources.
“Moreover, the situation for companies is good, their revenues are increasing in most cases, thus they can afford to invest,” the analyst continued, as quoted by SITA. “Construction growth is positive for the economy, or more precisely labour market.”
Construction sector is an important employer that can hire also people with lower qualifications who may have trouble finding work. Thus it can help the economy significantly, Kozub added.
