Industry - August 2006

In August 2006, seasonally adjusted industrial production was down by 1.1% month-on-month. The year-on-year industrial production index reached 107.4%. Sales from industrial activity at constant prices (of the year 2000) rose by 6.9%. Industrial new orders were up by 13.5% year-on-year.
Seasonally adjusted industrial production in August 2006 was down by 1.1% month-on-month. The trend grew by 0.4% (Table 5).

The year-on-year industrial production index reached 107.4% in August. This year, it is only the second case when the y-o-y growth did not reach a two-digit figure (the first one was in April). It was partially caused by a shift of company holidays from July to August in some branches.The growth of industrial production (Table 6) was most affected by ‘manufacture of electrical and optical equipment’ (+13.5%, contribution to the growth of industry in total 1.7 percentage points), ‘manufacture of basic metals and fabricated metal products’ (+10.9%, contribution 1.5 p.p.) and ‘manufacture of machinery and equipment’ (+19.6%, contribution 1.2 p.p.). Decreases were recorded for ‘manufacture of food products, beverages and tobacco’ (-4.2%, contribution -0.4 p.p.) and ‘manufacture of textiles and textile products’ (-1.9%, contribution -0.1 p.p.).

As to the main industrial groupings, production increases were recorded for ‘consumer durables’ (+23.8%), ‘capital goods’ (+9.6%), ‘intermediate goods’ (+8.8%) and ‘energy’ (+5.3%). Production of ‘consumer non-durables’ decreased (-2.6%).

Sales from industrial activity at constant prices (of the year 2000) rose by 6.9% year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of electrical and optical equipment’ (+10.4%, contribution to the growth of industry in total 1.6 percentage points), ‘manufacture of machinery and equipment’ (+19.7%, contribution 1.5 p.p.) and ‘manufacture of rubber and plastic products’ (+20.6%, contribution 1.2 p.p.). Sales from industrial activity decreased in ‘manufacture of food products, beverages and tobacco’ (-3.9%, contribution -0.4 p.p.), ‘electricity, gas and water supply’ (-1.7%, contribution -0.1 p.p.) and ‘manufacture of textiles and textile products’ (-2.3%, contribution -0.1 p.p.).

Direct export sales of industrial enterprises increased by 8.3% at constant prices (+8.2% at current prices), and their proportion in total sales of industrial enterprises was 47.3% (current prices).
Sales from industrial activity of foreign-controlled enterprises were up by 13.0% at constant prices (+14.2% at current prices), and their proportion in total sales stood at 56.6% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 12.1% at constant prices (+12.3% at current prices) and made up 73.5% of total sales of these enterprises at current prices.

The average number of employees in the industry went up by 1.4% in August (+15.4 thousand persons) year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+9.3%), ‘manufacture of electrical and optical equipment’ (+7.0%) and ‘manufacture of basic metals and fabricated metal products’ (+6.0%). Employment decreased most in ‘manufacture of textiles and textile products’ (-8.1%), ‘electricity, gas and water supply’ (-6.3%) and ‘manufacture of food products, beverages and tobacco’ (-5.2%).
The average monthly nominal wage in the industry rose by 5.5% year-on-year and amounted to CZK 19 054. The average hourly wage increased by 4.4% and was CZK 142.2. Labour productivity in industry (sales per employee) rose by 5.4% and hourly labour productivity by 4.3%. Unit wage costs were up by 0.1%.

Industrial new orders in selected CZ-NACE activities concluded in August reached the value of CZK 128.5 billion (current prices), of which non-domestic industrial new orders made up CZK 80.6 billion. The industrial new orders index (y-o-y) in total stood at 113.5%, of which the non-domestic industrial new orders index was 111.8%. Non-domestic industrial new orders grew most in ‘manufacture of motor vehicles, trailers and semi-trailers‘ (+11.2%, contribution to the growth of industry in total 3.2 percentage points), ‘manufacture of fabricated metal products, except of machinery and equipment’ (+32.8%, contribution 2.7 p.p.) and ‘manufacture of machinery and equipment‘ (+18.2%, contribution 2.3 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of office machinery and computers‘ (-9.0%, contribution –0.5 p.p.), ‘manufacture of basic metals‘ (-3.1%, contribution -0.3 p.p.) and ‘manufacture of wearing apparel, dressing and dyeing of fur’ (-10.8%, contribution -0.1 p.p.). The volume of orders in selected CZ-NACE activities was CZK 374.7 billion (index 124.4%) at the end of August 2006.

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Note
Contact: Jan Ernest, phone (+420) 274054188, e-mail jan.ernest@csu.gov.cz
Data source: CZSO direct survey in enterprises
End of data collection: 5 October 2006
End of data processing: 9 October 2006
Related publication: 8001-06 Industry of the Czech Republic ( http://www.czso.cz/eng/edicniplan.nsf/8001-06 )
Starting with the News Release publishing results for January 2006, IPI results are processed according to the new methodology, which was published in the Press Release of 10 March 2006.