Industry of the Czech Republic

Comment. B

Sales from industrial activity at constant prices (of the year 2000) in July 2007 rose by 13.0% (+15.8% at current prices), by 10.4% WDA, or, identically, by 10.4% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of transport equipment’ (+18.7%, contribution to the growth of industry in total 4.0 percentage points), ‘manufacture of electrical and optical equipment’ (+17.2%, contribution 2.6 p.p.) and ‘manufacture of machinery and equipment’ (+22.2%, contribution 1.7 p.p.). Sales from industrial activity decreased in 'mining and quarrying of energy producing materials' (-8.7%, contribution -0.1 p.p.), 'mining and quarrying except energy producing materials' (-6.4%, contribution -0.04 p.p.) and 'manufacture of coke, refined petroleum products' (-1.7%, contribution -0.04 p.p.).
Direct export sales of industrial enterprises increased by 13.9% at constant prices (+16.5% at current prices), and their proportion in total sales of industrial enterprises stood at 48.9% (at current prices).
Sales from industrial activity of foreign-controlled enterprises were 15.8% up at constant prices (+18.3% at current prices), and their proportion in total sales stood at 60.5% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 13.8% at constant prices (+16.3% at current prices) and made up 75.4% of total sales of these enterprises (current prices).
The average number of persons employed*) in the industry went up by 2.6% in July 2007 (+29.9 thousand persons) year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+10.3%), ‘manufacture of electrical and optical equipment’ (+5.8%) and ‘manufacture of machinery and equipment’ (+5.1%). Employment decreased most in ‘manufacture of leather and leather products’ (-9.1%), ‘manufacture of textiles and textile products’ (-7.2%) and ‘mining and quarrying of energy producing materials’ (-5.9%).
The average monthly nominal wage in industry rose by 9.4% year-on-year and in July amounted to CZK 21,260. The average hourly wage increased by 5.2% and stood at CZK 170.3. Labour productivity in industry (sales per employee) rose by 9.5% and hourly labour productivity by 5.9%.

Graph 04

Industrial new orders in selected CZ-NACE activities concluded in July 2007 reached the value of CZK 136.0 billion (current prices), of which non-domestic industrial new orders made up CZK 86.5 billion. The y-o-y index of industrial new orders in total stood at 108.6%%, the index of non-domestic industrial new orders was 106.1%. Non-domestic industrial new orders grew most in ‘manufacture of machinery and equipment‘ (+16.4%, contribution to the growth of industry in total 2.2 percentage points), manufacture of electrical machinery and apparatus (+21.0%, contribution 2.1 p.p.) and ‘manufacture of motor vehicles, trailers and semi-trailers’ (+5.3%, contribution 1.6 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of radio, television and communication equipment and apparatus’ (-23.2%, contribution -2.1 percentage points), ‘manufacture of other transport equipment’ (-27.2%, contribution -0.7 percentage points) and ‘manufacture of office machinery and computers’ (-6.0%, contribution -0.3 p.p.).

*) Starting from January 2007, in accordance with Eurostat methodology, monthly data on numbers of employed persons are published by the Czech Statistical Office as part of the short-term industrial statistics. Unlike the average registered number of employees published before, the new indicator includes also persons working under agreement for work performed outside the employment relationship and other employed persons who participate in work for the company without having an employment relationship with the company. The new figure represents full-time equivalent (FTE). This change has an impact on average wage and labour productivity calculations. The last mentioned indicator considers, in addition, the number of agency workers not included in the number of persons employed. Year-on-year comparability of the data published is ensured.