Industry of the Czech Republic

Commentary B

Sales in industry in February 2006 (year-on-year at constant prices, 2000 average prices) reached 111.9%. Sales in industry rose especially in enterprises with 500 or more employees (+18.2%), and their proportion in total sales stood at 60.6%. High growth of ‘manufacture of transport equipment’ (+30.8%, raising the growth of industry by 5.90 percentage points in total), ‘manufacture of electrical and optical equipment’ (+11.5%, raising the growth of industry by 1.62 p.p. in total) and ‘manufacture of machinery and equipment’ (+15.8%, raising the growth of industry by 1.11 p.p. in total) contributed to the increase of total sales in industry. Sales in industry decreased in ‘manufacture of coke, refined petroleum products’ (-23.0%, decreasing the growth by –0.32 p.p.) and ‘manufacture of textiles and textile products’ (-9.0%, decreasing the growth by –0.24 p.p.).

Direct export sales of industrial enterprises rose by +8.3% at constant prices (+5.9% at current prices), and their proportion in total sales of industrial enterprises stood at 48.1% (current prices).

Sales of industrial foreign-controlled enterprises were up by 20.5% at constant prices (+18.2% at current prices), and their proportion in total sales stood at 58.2% (current prices). Their direct export sales increased by 10.3% at constant prices (+7.8% at current prices) and made up 75.4% of total sales of these enterprises at current prices.

In February 2006, the average number of employees in the industry went up by 2.4% (+26.5 thousand persons) year-on-year. Year-on-year, employment increased in ‘manufacture of rubber and plastic products’, ‘manufacture of transport equipment’ and ‘manufacture of wood and wood products’; it decreased most in ‘manufacture of textiles’, ‘electricity, gas and water supply’ and ‘manufacture of leather and leather products’.

The average monthly nominal wage rose by 6.0% year-on-year and amounted to CZK 17,299. The average hourly wage increased by 4.9% and was CZK 127.1. Labour productivity (sales per employee) increased by 9.3% and productivity per hour by 8.2%. Unit wage costs were down by 3.0%.

Graph 4

Industrial new orders in selected CZ-NACE activities concluded in February were worth CZK 130.5 billion (current prices), of which non-domestic industrial new orders made up CZK 85.9 billion. The industrial new orders index (y-o-y) in total stood at 117.5%, of which the non-domestic industrial new orders index was 113.2%. Non-domestic industrial new orders increased most in ‘manufacture of machinery and equipment’ (index 137.6%), ‘manufacture of motor vehicles, trailers and semi-trailers‘ (index 126.6%) and ‘manufacture of fabricated metal products, except of machinery and equipment’ (index 123.6%). Non-domestic industrial new orders dropped in ‘manufacture of wearing apparel, dressing and dyeing of fur‘ (index 81.1%) and ‘manufacture of pulp, paper and paper products‘ (index 88.9%). The volume of orders in selected CZ-NACE activities was CZK 315.5 billion in the end of February 2006.