Development of the industry - 3. quarter of 2004
Product Code: e-8019-04
Development of the industry in the third quarter of 2004: analysis
In O3 2004, the industry maintained its growth rate achieved in Q1 and Q2 2004.
Industrial production index Q1 109.0% (108.2% WDA* )
Q2 112.6% (111.1% WDA)
Q3 108.7% (110.9% WDA)
Sales index (constant prices) Q1 108.8% (108.0% WDA)
Q2 113.5% (111.3% WDA)
Q3 107.8% (110.1% WDA)
The main factors of the industrial growth remained unchanged:
- new production capacities, especially of foreign investors, continued to be put on stream (especially for the production of motor vehicle parts and accessories)
- continued boom in the iron and steel market
- continued revival of non-domestic orders in electrical engineering
- stable deliveries from energy sector to manufacturing – they also covered all demands from the new production capacities
- continued favourable impact of the worldwide revival of economy which further fuelled the Czech industry’s exports significantly
- lower working days availability (there were three less working days in Q3 2004 than in Q3 2003).
The intensive action of the above-mentioned factors led to the continuation of marked structural changes in industrial production.
Production
The year-on-year index of industrial production reached 108.7% in Q3 2004. The highest growth was recorded in:
- manufacture of basic metals and fabricated metal products (+23.9%)
- manufacture of electrical and optical equipment (+12.0%)
- manufacture of transport equipment (+10.9%).
Industrial production decreased in:
- manufacture of leather and leather products (-7.4%)
- manufacture of textiles and textile products (-2.5%)
- manufacture of food products, beverages and tobacco (-1.1%).
In Q3 2004, industrial production increased in the following main industrial groupings: capital goods (+13.6%), intermediate goods (+11.9%), consumer durables (+5.8%), energy (+2.1%), and consumer non-durables (+0.3%).
Sales
Q3 2004 sales in industry (constant prices) were 7.8% up year-on-year.
They grew most in the manufacture of electrical and optical equipment (+35.1%), manufacture of machinery and equipment (+11.9%), and manufacture of rubber and plastic products (+7.2%). The sales dropped in manufacture of coke and refined petroleum products (-16.6%), manufacture of food, beverages and tobacco products (–2.0%) and mining and quarrying except energy producing materials (-1.5%).
Direct exports
Direct export sales of industrial enterprises increased by 15.7% at constant prices (17.7% at current prices), and their share in total sales of industrial enterprises stood at 48.7%. The largest growth at constant prices occurred in the manufacture of electrical and optical equipment (+42.8%), manufacture of machinery and equipment (+18.8%), manufacture of food, beverages and tobacco products (+16.5%), and manufacture of rubber and plastic products (+14.8%). The biggest decreases were recorded for electricity, gas and water supply (–39.2%), mining and quarrying of energy producing materials (-7.5%), and manufacture of coke and refined petroleum products (-6.1%).
The biggest share of direct export sales in sales in industry in total was reached in manufacture of transport equipment, manufacture of electrical and optical equipment, manufacture of basic metals and fabricated metal products, manufacture of machinery and equipment, manufacture of rubber and plastic products.
Foreign-controlled enterprises
Sales in industry achieved by foreign-controlled enterprises grew by 12.5% at constant prices (15.0% at current prices), and their share in total sales stood at 52.3%. Direct export sales of these enterprises increased by 18.8% (19.3% at current prices) and accounted for 72.2% of total sales.
Employment
Q3 2004 employment in the industry decreased by 2.6 thousand persons (-0.2%). It grew in manufacturing, by 2.7 thousand persons (+0.3%), namely in:
- manufacture of electrical and optical equipment (+6.6%)
- manufacture of rubber and plastic products (+6.3%)
- manufacture of transport equipment (+3.3%)
The employment decreased most in:
- manufacture of leather and leather products (-9.5%)
- manufacture of textile and textile products (-8.1%)
- mining and quarrying of energy producing materials (-6.2%)
- electricity, gas and water supply (-4.0%).
Wages
In Q3 2004, average nominal wage in the industry reached CZK 17 223 and was 7.3% up year-on-year. The highest wage levels were measured for:
- manufacture of coke, refined petroleum products and nuclear fuel
- electricity, gas and water supply
- manufacture of chemicals, chemical products and man-made fibres,
whilst the lowest wages were paid in:
- manufacture of leather and leather products
- manufacture of textiles and textile products
- manufacturing n.e.c.
Labour productivity
In Q3 2004, labour productivity in the industry went up by 8.0%, growing faster than average wage. Unit wage costs dropped by 0.6%.
New orders (selected industries)
In Q3 2004, new orders worth CZK 324.6 billion were signed, being 23.4% up on Q3 2003. Increases in the new orders occurred in:
– manufacture of basic metals and fabricated metal products (+49.0%)
- manufacture of office machinery and computers (+40.0%)
- manufacture of radio, television and communication equipment and apparatus (+39.1%).
The volume of new orders dropped in:
– manufacture of wearing apparel; dressing and dyeing of fur (-17.0%)
– manufacture of other transport equipment (-15.0%).
New non-domestic orders worth CZK 206.3 billion and signed in Q3 2004 were 27.6% up on Q3 2003. Increases in the new non-domestic orders were recorded for:
- manufacture of radio, television and communication equipment and apparatus (+65.7%)
- manufacture of medical, precision and optical instruments, watches and clocks (+44.4%)
- manufacture of machinery and equipment (+40.6%).
Decreases in the new non-domestic orders were ascertained in:
– manufacture of other transport equipment (-34.5%)
- manufacture of wearing apparel; dressing and dyeing of fur (-13.4%).
Development of industry in the EU
Change, % | ||||
June 2004 | July 2004 | August 2004 | ||
| Industrial production index (corresponding period of previous year =100) | Eurozone EU 25 EU 15 ČR | 3.3 3.4 2.9 13.4 | 2.2 2.2 1.8 17.0 | 1.5 1.5 1.1 6.7 |
| Index of orders (current prices.) (corresponding period of previous year =100) | Eurozone EU 25 EU 15 ČR | 12.7 10.9 10.2 24.2 | 5.1 3.8 2.9 25.4 | 10.6 7.7 6.7 29.7 |
| Industrial production index (SA) (previous month =100) | Eurozone EU 25 EU 15 ČR | -0.1 0.0 0.0 1.7 | 0.2 0.0 -0.1 2.5 | -0.6 -0.5 -0.3 -3.3 |
| Index of orders (SA) (previous month =100) | Eurozone EU 25 EU 15 ČR | -5.4 -5.0 -4.9 -3.1 | -0.6 0.1 0.0 1.5 | -0.6 -1.0 -1.5 3.2 |
Source: News release - 19 October; Industrial production - Eurostat
News release - 22 October; Industrial new orders - Eurostat
http://europa.eu.int/comm/eurostat/
*Working days adjusted.
