Development of the industry - 1. quarter of 2004
Product Code: e-8019-04
Development of the industry in the first quarter of 2004: analysis
In the first quarter of 2004 (Q1 2004), the industry followed up the growth of the previous periods and accelerated.
The main factors of the accelerated growth of the industry were the following:
- growth of global demand for steel and iron raised metallurgical production
- revival of orders in electrical engineering,
- putting on stream new production capacities of foreign investors, especially for the production of motor vehicle parts
- stability of the energy sector
- favourable development of exports
Production
Year-on-year index of industrial production reached 109.0% in Q1 2004. The highest growth was recorded in:
- manufacture of basic metals and fabricated metal products (+22.2%)
- manufacture of electrical and optical equipment (+14.4%)
- manufacture of rubber and plastic products (+11.8%).
Industrial production decreased in:
- mining and quarrying of energy producing materials (-3.7%)
- manufacture of machinery and equipment (-1.8%)
- manufacture of textiles and textile products (0.5%).
In Q1 2004, the industrial production increased in the following main industrial groupings: consumer durables (+26.0%), intermediate goods (+15.2%), capital goods (+6.3%), consumer non-durables (+3.0%) and energy (+0.6%).
Sales
Q1 2004 sales in industry (constant prices) were 9.1% up year-on-year.
They grew most in the manufacture of electrical and optical equipment (+21.1%), manufacture of basic metals and fabricated metal products (+15.8%), and manufacture of rubber and plastic products (+15.6%). The sales dropped in mining and quarrying of energy producing materials (-6.2%) and manufacture of coke and refined petroleum products (-2.6%).
Direct export sales of industrial enterprises increased by 13.7% at constant prices and 16.3% at current prices. Their share in total sales of industrial enterprises stood at 49.4%. The highest growth at constant prices occurred in the manufacture of electrical and optical equipment (+26.8%), manufacture of basic metals and fabricated metal products (+25.4%) and manufacture of other non-metallic mineral products (+16.5%). The highest decreases were recorded for mining and quarrying of energy producing materials (-23.0%), manufacture of coke and refined petroleum products (+17.9%) and electricity, gas and water supply (-6.9%).
Sales in industry achieved by foreign-controlled enterprises grew by 12.3% (at constant prices) and 13.9% (at current prices) and their share in total sales accounted for 52.9%. Direct export sales of these enterprises increased by 15% (17.2% at current prices); their share in total sales was 72.6%.
Employment
In Q1 2004, employment in the industry decreased by 18.0 thousand persons (-1.8%) and this occurred most in:
- manufacture of textile and textile products (-8.2%)
- mining and quarrying of energy producing materials (-4.5%)
- manufacturing n.e.c. (-4.0%).
Growth of employment was recorded for:
- manufacture of rubber and plastic products (+5.0%)
- manufacture electrical and optical equipment (+3.6%)
- manufacture of basic metals and fabricated metal products (+0.2%).
Wages
Average nominal wage in the industry in Q1 2004 reached CZK 16 345 and was 8.6% up year-on-year. The highest wage levels were measured in:
- manufacture of coke, refined petroleum products and nuclear fuel
- electricity, gas and water supply
- manufacture of chemicals, chemical products and man-made fibres.
The lowest wage levels were observed in:
- manufacture of leather and leather products
- manufacture of textiles and textile products
- manufacturing n.e.c.
Labour productivity
In Q1 2004, labour productivity increased in the industry by 10.8%, growing faster than average wage. Unit wage costs dropped by 2.0%.
New orders (selected industries)
In Q1 2004, new orders were signed, worth CZK 324.0 billion. This volume is 15.7% up on Q1 2003. Increases in new orders were ascertained in
- manufacture of other transport equipment (+68.7%)
- manufacture of electric machinery and apparatus n.e.c. (+27.1%)
- manufacture of radio, television and communication equipment and apparatus (+26.5%) .
New orders dropped in volume in
- manufacture of wearing apparel; dressing and dyeing of fur (-12.5%)
- manufacture of medical, precision and optical instruments, watches and clocks (-8.4%)
- manufacture of chemicals, chemical products and man-made fibres (-2.9%).
New non-domestic orders signed in Q1 2004, amounting to CZK 208.8 billion, were by 18.4% up on Q1 2003. Increases in the new orders were recorded for:
- manufacture of medical, precision & optical instruments, watches & clocks (+58.1%)
- manufacture of fabricated metal products (+40.0%)
- manufacture of electric machinery and apparatus n.e.c. (+35.8%).
Decreases in new non-domestic orders were ascertained in:
- manufacture of wearing apparel; dressing and dyeing of fur (-6.9%)
- manufacture of textiles and textile products (-3.4%)
- manufacture of chemicals, chemical products and man-made fibres (-2.2%).
