Construction output fell by 0.6% in second quarter

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Data compiled by the Central Statistical Bureau of Latvia (CSB) August 11 show that, compared to the second quarter of 2019, in the second quarter of 2020 construction output reduced by 0.6 % (according to calendar adjusted data at constant prices). 

Construction output in construction of buildings decreased by 5 %, in civil engineering – by 7.7 %, but in specialized construction activities it rose by 12.3 %.

In the second quarter of this year construction output was negatively affected both by COVID-19 pandemic and by lack of voluminous construction objects. COVID-19 was mentioned as a reason for drop in construction output by 47 or 5.9 % of construction enterprises surveyed.

The most significant output decline, as compared to the corresponding quarter of the previous year, was in civil engineering, which was affected by reduction (of 15.6 %) in construction of roads and railway as well as construction of water projects and other civil engineering n.e.c. (of 46.6 %). Construction output increase, in turn, was registered in construction of utility projects (of 27 %).

Construction output rise was observed in such specialized construction activities as electrical, plumbing and other construction installation activities – by 16.5 %, as well as in other specialized construction activities and demolition and site preparation – by 27.7 % and 26.4 %, respectively.

Compared to the previous quarter, construction output fell by 12.9 % (according to seasonally adjusted data at constant prices), of which construction of buildings reduced by 12.2 %, civil engineering – by 10.3 % and specialized construction activities – by 13.8 %.

Construction output changes
(as per cent, at constant prices)

 

2nd quarter of 2020, compared to

1st quarter of 2020 (seasonally adjusted)

2nd quarter of 2019 (calendar adjusted)

Total

-12.9

-0.6

Construction of buildings

-12.2

-5.0

Civil engineering

-10.3

-7.7

Construction of roads and railways (incl. bridges)

-12.1

-15.6

Construction of utility projects

-6.7

27.0

Construction of other civil engineering projects n.e.c. (water projects and other civil engineering n.e.c.)

-43.1

-46.6

Specialised construction activities

-13.8

12.3

Demolition and site preparation

-16.2

26.4

Electrical, plumbing and other construction installation activities

11.4

16.5

Building completion and finishing (plastering, floor and wall covering, painting and glazing, etc.)

-26.8

-8.2

Other specialised construction activities n.e.c.

-14.2

27.7

In the second quarter of 2020, 698 building permits were granted for the construction, capital repairs, reconstruction and restoration of residential buildings with the total floor space of 194 thousand m2 or 297 building permits less and 28 thousand m2 smaller space than in the second quarter of 2019, of which 503 permits with the intended floor space of 144 thousand m2 were issued for construction of new buildings (240 building permits less and 21 thousand m2 smaller intended floor space than a year ago). Out of the total number, 402 permits were granted for construction of one-dwelling buildings (with intended floor space of 77 thousand m2).

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