Development of the industry - 2. quarter of 2004
Product Code: e-8019-04
Development of the industry in the second quarter of 2004: analysis
In O2 2004, the industry accelerated its growth considerably.
The main factors of the accelerated growth of the industry were the following:
- continued intensive structural changes in the Czech industry
- putting on stream new production capacities of foreign investors, especially for the production of motor vehicle parts and accessories
- revival of non-domestic orders in electrical engineering
- continued boom in the iron and steel market
- stability of the energy sector
- favourable impact of the incoming worldwide revival of economy on the Czech industry’s exports
- more working days in Q2 2004 (+2 on Q2 2003).
Production
Year-on-year index of industrial production reached 112.6% in Q2 2004. The highest growth was recorded in:
- manufacture of basic metals and fabricated metal products (+27.6%)
- manufacture of electrical and optical equipment (+23.8%)
- manufacture of transport equipment (+18.4%).
Industrial production decreased in:
- manufacture of leather and leather products (-3.9%)
- manufacture of food products, beverages and tobacco (-1.1%).
In Q2 2004, industrial production increased in the following main industrial groupings: capital goods (+19.6%), intermediate goods (+16.0%), consumer durables (+9.7%), consumer non-durables (+3.1%), and energy (+2.8%).
Sales
Q1 2004 sales in industry (constant prices) were 13.5% up year-on-year.
They grew most in the manufacture of electrical and optical equipment (+38.3%), manufacture of machinery and equipment (+18.3%), manufacture of rubber and plastic products (+16.2%), and manufacture of chemicals, chemical products and man-made fibres (16.2%). The sales dropped in manufacture of coke and refined petroleum products (-12.8%) and manufacture of food, beverages and tobacco products (-1.6%).
Direct exports
Direct export sales of industrial enterprises increased by 18.8% at constant prices and 22.9% at current prices, and their share in total sales of industrial enterprises stood at 48.8% (Graph 1). The highest growth at constant prices occurred in the manufacture of electrical and optical equipment (+47.3%), manufacture of chemicals, chemical products and man-made fibres (+23.6%), manufacture of rubber and plastic products (+22.2%), and manufacture of machinery and equipment (+20.9%). Their highest decreases were recorded for electricity, gas and water supply (-38.3%) and for manufacture of coke and refined petroleum products (-11.5%).
Graph 1
Foreign-controlled enterprises
Sales in industry achieved by foreign-controlled enterprises grew by 18.7% (at constant prices) or 21.8% (at current prices), and their share in total sales accounted for 53.7% (Graph 2). Direct export sales of these enterprises increased by 21.7% (25.3% at current prices); their share in their total sales was 72.5%.
Graph 2
Employment
Q2 2004 employment in the industry decreased by 9.2 thousand persons (-0.8%) and this occurred most in:
- manufacture of textile and textile products (-8.4%)
- manufacture of leather and leather products (-6.5%)
- mining and quarrying of energy producing materials (-4.2%).
The employment grew in:
- manufacture of rubber and plastic products (+6.4%)
- manufacture electrical and optical equipment (+4.6%)
- manufacture of transport equipment (+1.2%).
Wages
Average nominal wage in the industry in Q2 2004 reached CZK 17 364 and was 6.4% up year-on-year. The highest wage levels were established for:
- manufacture of coke, refined petroleum products and nuclear fuel
- electricity, gas and water supply
- mining and quarrying of energy producing materials.
The lowest wage levels were in:
- manufacture of leather and leather products
- manufacture of textiles and textile products
- manufacturing n.e.c.
Labour productivity
In Q2 2004, labour productivity in the industry increased by 14.4% and grew faster than average wage. Unit wage costs dropped by 7.0%.
New orders (selected industries)
In Q2 2004, new orders worth CZK 265.6 billion were signed. This volume was 30.7% up on Q2 2003. Increases in the new orders were ascertained for:
- manufacture of office machinery and computers (+81.4%)
- manufacture of other transport equipment (+53.0%)
- manufacture of basic metals and fabricated metal products (+50.7%) .
The volume of new orders dropped in:
manufacture of wearing apparel; dressing and dyeing of fur (-7.6%).
New non-domestic orders worth CZK 165.3 billion signed in Q2 2004 were 36.5% up on Q2 2003. Increases in the new orders were recorded for:
- manufacture of office machinery and computers (+81.0%)
- manufacture of electric machinery and apparatus n.e.c. (+55.2%)
- manufacture of basic metals and fabricated metal products (+55.0%).
Decreases in the new non-domestic orders were ascertained in:
- manufacture of wearing apparel; dressing and dyeing of fur (-0.2%).
Development of the EU 25 industry
 | January 2004 | February 2004 | March 2004 | April 2004 | May 2004 |
| Industrial production index (corresponding month of previous year =100) | 1.4 | 1.5 | 2.0 | 2.3 | 4.1 |
| Orders index (current prices) (corresponding month of previous year =100) | - 1.7 | 3.9 | 13.6 | 7.2 | 7.4 |
| Industrial production index (SA) (previous month =100) | 0.0 | 0.3 | 0.2 | 0.5 | 0.6 |
| Orders index (SA) (previous month =100) | - 2.6 | 1.5 | 1.8 | 2.2 | - 0.1 |
SA = seasonally adjusted
