Industry of the Czech Republic

Comment. B

Sales from industrial activity at constant prices (of the year 2000) in September 2007 rose by 3.3% (+4.4% at current prices), by 5.0% WDA, or by 6.4% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of electrical and optical equipment’ (+10.6%, contribution to the growth of industry in total 1.8 percentage points), ‘manufacture of transport equipment’ (+7.3%, contribution 1.6 p.p.) and ‘manufacture of machinery and equipment’ (+14.0%, contribution 1.2 p.p.). Sales from industrial activity decreased in 'manufacture of coke, refined petroleum products' (-50.0%, contribution -1.0 p.p.), for 'manufacture of basic metals and fabricated metal products' (-4.0%, contribution -0.4 p.p.) and 'manufacture of chemicals, chemical products and man-made fibres' (-8.5%, contribution -0.4 p.p.).
Direct export sales of industrial enterprises increased by 6.6% at constant prices (+6.8% at current prices), and their proportion in total sales of industrial enterprises stood at 51.1% (at current prices).
Sales from industrial activity of foreign-controlled enterprises were 6.9% up at constant prices (+7.7% at current prices), and their contribution to total sales made 61.4% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 8.2% at constant prices (+8.7% at current prices) and made up 76.2% of total sales of these enterprises (current prices).
The average number of persons employed*) in the industry went up by 1.4% in September 2007 (+15.6 thousand persons), year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+6.0%), ‘manufacture of machinery and equipment’ (+5.3%) and ‘manufacture of transport equipment’ (+4.7%). Employment decreased most in ‘manufacture of leather and leather products’ (-8.3%), ‘manufacture of textiles and textile products’ (-8.6%) and ‘mining and quarrying of energy producing materials’ (-6.0%).
The average monthly nominal wage in industry rose by 5.9% year-on-year and in September amounted to CZK 20,089. The average hourly wage increased by 9.4% and stood at CZK 149.5. Labour productivity in industry (sales per employee) rose by 1.2% and hourly labour productivity by 4.2%.

Graph 4

Industrial new orders in selected CZ-NACE activities concluded in September 2007 reached the value of CZK 157.7 billion (current prices), of which non-domestic industrial new orders made up CZK 103.3 billion. The y-o-y index of industrial new orders in total stood at 109.8%, the index of non-domestic industrial new orders was 116.3%. Non-domestic industrial new orders grew most in ‘manufacture of motor vehicles, trailers and semi-trailers’ (+23.3%, contribution to the growth of industry in total 7.3 percentage points), ‘manufacture of machinery and equipment‘ (+43.0%, contribution 6.1 p.p.) and manufacture of electrical machinery and apparatus (+17.7%, contribution 1.8 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of radio, television and communication equipment and apparatus’ (-27.1%, contribution -1.9 percentage points), ‘manufacture of office machinery and computers’ (-20.4%, contribution -1.1 percentage points) and ‘manufacture of textiles and textile products’ (-5.4%, contribution -0.1 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.