Development of the industry - 1. quarter of 2005

The growth rate of industrial production slowed down in Q1 2005 in comparison with Q1 2004, primarily due to:

– drop in the economic activity in the EU member countries,

– higher reference basis of Q1 2004 (1 more working day)

– preparation for the shift to new production in some enterprises

– slackening of the boom on the steel and iron market

– drop in the output and sales in manufacture of textile and textile products.

Production

The year-on-year index of industrial production reached 104.4% in Q1 2005. The highest growth was recorded for:

– manufacture of machinery and equipment (+14.1)

– manufacture of coke, refined petroleum products and nuclear fuel (+12.5%)

- manufacture of transport equipment (+9.3%).

Industrial production decreased in:

- manufacture of leather and leather products (-14.6%)
- manufacture of wood and wood products (-10.8%)
- manufacture of other non-metallic mineral products (-6.3%).

In Q1 2005, industrial production increased in the following main industrial groupings (MIGs): intermediate goods (+9.7%), consumer non-durables (+0.5%), energy (+0.5%), and capital goods (+0.3%). It decreased consumer durables (-7.5%).

Sales

In Q1 2005, sales in industry were higher by 6.0% year-on-year (constant prices), growing most in manufacture of transport equipment (+18.5%), manufacture of electrical and optical equipment (+13.1%) and manufacture of machinery and equipment (+12.5%), They decreased in manufacture of coke and refined petroleum products (-11.0%), mining and quarrying (-8.4%) and manufacture of leather and leather products (-5.4%).

Direct exports

Direct export sales of industrial enterprises increased by 10.7% at constant prices (8.0% at current prices), and their share in total sales of industrial enterprises stood at 49.3% at current prices. Their largest growth at constant prices occurred in mining and quarrying (+25.5), manufacture of food products, beverages and tobacco (+22.3%), manufacture of machinery and equipment (+17.6%), and manufacture of transport equipment (+17.2). Their biggest decreases were recorded for electricity, gas and water supply (-45.1%), manufacture of leather and leather products (-16.9%) and manufacture of wood and wood products (-5.6%).

Foreign-controlled enterprises

Sales in industry achieved by foreign-controlled enterprises grew by 12.0% at constant prices (11.3% at current prices), and their share in total sales stood at 54.0% at current prices. Direct export sales of these enterprises increased by 9.7% at current prices (13.8% at constant prices) and accounted for 73.9% of total sales.

In the year 2004, there were 1 842 foreign-controlled enterprises operating in the industry; they employed 425.6 thousand persons. The average monthly nominal wage was by 11.9% up on the average monthly nominal wage of the total industry.

In Q1 2005, employment in the industry grew by 9.0 thousand persons (+0.8%), most in the following industries:

- manufacture of transport equipment (+6.9%)
- manufacture of electrical and optical equipment (+5.9%)
- manufacture of rubber and plastic products (+5.0%).

It decreased most in:

– mining and quarrying, except of energy producing materials (-14.0%)

- manufacture of leather and leather products (-9.1%)
- manufacture of textile and textile products (-6.7%).

Wages

Average monthly nominal wage in the industry reached CZK 16 949 in Q1 2005 and was 6.9% up on Q1 2004. The highest level of wages (average monthly nominal wage per employee) was recorded for:

- manufacture of coke and refined petroleum products
- electricity, gas and water supply
- manufacture of chemicals, chemical products and man-made fibres.

The lowest level of wages was recorded for:

- manufacture of leather and leather products
- manufacture of textiles and textile products
- manufacture of wood and wood products.

Labour productivity

In Q1 2005, labour productivity in the industry went up by 5.1%, growing faster than average monthly nominal wage. Unit wage costs dropped by 1.3%.

In Q1 2005, new orders worth CZK 348.5 billion were signed and their volume was 7.7% up on Q1 2004.

The volume of new orders grew in:

– manufacture of office machinery and computers (+33.9%)

– manufacture of basic metals and fabricated metal products (+24.6%)

- manufacture of machinery and equipment (+15.7%)

and decreased in:

– manufacture of other transport equipment (-17.2%)

– manufacture of wearing apparel; dressing and dyeing of fur (-14.0%)

– manufacture of textile and textile products (-12.5%).

In the same quarter, new non-domestic orders worth CZK 234.4 billion were signed. Their volume was 12.6% up on Q1 2004.

Increases in the volume of new non-domestic orders were ascertained in:

- manufacture of radio, television and communication equipment and apparatus (+49.0%)
- manufacture of office machinery and computers (+34.2%)
- manufacture of other transport equipment (+20.4%)

and decreases in:

– manufacture of textile and textile products (-4.4%)

- manufacture of wearing apparel; dressing and dyeing of fur (-4.1%).

Development of industry in the EU

Source: News release – 19 April 2005; Industrial production - Eurostat
News release – 22 April 2005; Industrial new orders - Eurostat
http://europa.eu.int/comm/eurostat/