Construction production in August 2024 dropped year-on-year the most in the last 4 years

In August 2024, construction enterprises produced a significantly lower value, even by a double-digit, than a year ago. The most dynamic slump since October 2020 was due to a slowdown in new construction, as well as in works on engineering structures, in terms of the type of construction.

Construction production¹⁾ in August 2024 amounted to EUR 620.2 million and compared to last year it was lower by 11.5%²⁾. It was the worst result since October 2020. The construction industry has been struggling with a decline in its performance since last December, recording a year-on-year growth in production only in April 2024. After seasonal adjustment, construction production decreased by 4.3%.

The lagging behind of the entire industry was mainly caused by the decline of the dominant domestic new construction³⁾ by 14.6%, but also by the decline of domestic repairs and maintenance works by 5.2%. Only the smallest component - other construction works - rose, by up to a quarter. Domestic construction production represented almost 90% of the total output of the construction industry.

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Broken down by construction type, the relatively more significant construction of buildings lagged behind by 4.7% year-on-year, but works on engineering constructions, including highway construction, dropped by up to a fifth (by 21%).

The year-on-year drop in production by 16.3% was also reported by non-domestic construction companies. Their share in the total production was 10%.

In total for the first 8 months of 2024, construction production reached almost EUR 4.5 billion, which was by 5.4% less year-on-year. All components of domestic production had a lower performance than a year ago, the dominant new exhibition by 7.5% and repairs and maintenance by 1.8%. In terms of the production focus, construction of buildings decreased by 3.6% and works on engineering constructions by 12.3%. A slight increase was observed only in works abroad.