Construction output contracts at slower pace in June

According to raw data the volume of construction output lagged behind the previous year’s level by 3.8% in June 2023. Out of the main groups of construction the construction of buildings increased by 7.5%, that of civil engineering fell by 20.5%. Based on seasonally and working day adjusted indices construction output was below the May level by 1.4%. Construction producer prices increased in the 2nd quarter of 2023 by 17.2% compared to the same period of the previous year.

In June 2023 compared to the same month of the previous year, output of the two main groups of construction changed oppositely: the construction of buildings grew by 7.5%, that of civil engineering fell by 20.5%.

Among the divisions of construction, production increased by 8.1% in the construction of buildings, decreased by 24.6% in civil engineering. Production in specialised constructions rose by 0.7%.

The volume of new contracts concluded increased 16.7%. Within it the volume of contracts for the construction of buildings was 40.1% higher, the volume regarding civil engineering declined by 14.4% compared to the June 2022 base.

The volume of the end-of-June stock of contracts at construction enterprises lessened by 26.1% compared to the previous year: within it the volume of contracts was down by 2.0% for the construction of buildings and decreased by 40.9% for civil engineering works.

In the first six months of 2023 compared to the same period of the previous year, construction output decreased by 7.0%.

Construction producer prices increased the most in the greatest weight carrying specialized construction activities (by 17.9%) in the 2nd quarter of 2023, within the divisions of construction, and went up in the construction of buildings and in civil engineering by 16.6% and 16.8% compared to the same period of 2022. The price increase was caused principally by rising costs, especially the growing wages and the increasing prices of several building materials.

Construction prices were 1.6% higher than in the previous quarter.