Construction companies estimate a fall by 1.4 percent in the first quarter

by   CIJ News iDesk III
2021-04-06   09:12

The Czech construction industry will fall by 1.4 percent year on year in the first quarter of this year, and will slow to 0.7 percent in the second quarter. Construction companies have orders for an average of ten months in advance. This emerges from a survey conducted by CEEC Research, in which it addressed 115 directors of construction companies in February.

"We expect rather stagnation in the second quarter, which will probably turn into a slight decline later. It will all depend on the willingness of the state and especially local governments to secure resources and invest in new or long-term announced projects. I also believe that , "Said the Chairman of the Board of Directors of Hochtief CZ Tomáš Koranda.

Construction companies expect that building construction will be worse off, ie especially the construction of flats, offices or industrial halls and warehouses. According to them, this sector will fall by 2.7 percent year on year in the first quarter. On the other hand, civil engineering, which consists largely through the construction of transport infrastructure, will increase by 0.6 percent. Larger companies with a minimum annual turnover of 100 million crowns are more optimistic.

In terms of orders, 42 percent of companies have about the same as a year ago, 30 percent report a decline and 28 percent the volume of orders has increased. "We are seeing the status of the contract so far. It will be seen what effect the pandemic will have on individual sectors and what their taste and need for investment will be. We expect government-proclaimed investment anti-crisis measures in road construction. finally it is necessary to complete, "added Jiří Kozel, CEO of Swietelsky stavební.

The Czech construction industry fell by 6.2 percent year on year last year, mainly due to measures against the spread of coronavirus. The last time it fell more was in 2013. It ranked 17th among the 27 countries of the European Union in terms of performance. In January this year, production fell by 5.2 percent. Data for February will be published by the Czech Statistical Office on Thursday.

Source: CTK