Industry - August 2007

In August 2007, seasonally adjusted industrial production decreased by 0.8%, compared to July 2007. Industrial production grew by 5.5%, year-on-year. Sales from industrial activity at constant prices rose by 7.0%, year-on-year. Industrial new orders increased by 12.3%, year-on-year.
Seasonally adjusted industrial production in August 2007 was 0.8% down, month-on-month. The trend grew by 0.3% (Table 5).

The year-on-year index of industrial production reached 105.5% in August. This value which was recorded as the lowest from the beginning of the year owed also to more extensive drawing of holidays in August. Seasonally adjusted index was also 106.6% (including working days adjustment). The growth of industrial production (Table 6) was most contributed to by 'manufacture of transport equipment' (+10.4%, contribution to the growth of industry in total 1.7 percentage points), 'manufacture of electrical and optical equipment' (+12.0%, contribution 1.6 p. p.) and 'manufacture of rubber and plastic products' (+17.7%, contribution 1.0 p.p.). A decrease was recorded for 'manufacture of basic metals and fabricated metal products' (-3.8%, contribution -0.6 p.p.), 'manufacture of chemicals, chemical products and man-made fibres' (-3.6%, contribution -0.2 p.p.) and 'manufacture of coke, refined petroleum products' (-3.0%, contribution -0.1 p.p.).

In August, the increase of production was recorded for the following main industrial groupings: ‘capital goods’ (+11.9%), ‘consumer durables’ (+8.0%), ‘intermediate goods’ (+4.2%) and ‘energy’ (+0.8%). Production of ‘consumer non-durables’ decreased (-0.9%).

Sales from industrial activity at constant prices (of the year 2000) rose by 7.0% (+9.7% at current prices), by 8.2% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of electrical and optical equipment’ (+12.5%, contribution to the growth of industry in total 2.0 percentage points), ‘manufacture of transport equipment’ (+10.4%, contribution 1.8 p.p.) and ‘manufacture of machinery and equipment’ (+13.7%, contribution 1.2 p.p.). Sales from industrial activity decreased in 'manufacture of chemicals, chemical products and man-made fibres' (-4.1%, contribution -0.2 p.p.), for 'manufacture of basic metals and fabricated metal products' (-1.9%, contribution -0.2 p.p.) and 'mining and quarrying except energy producing materials' (-7.7%, contribution -0.1 p.p.).

Direct export sales of industrial enterprises increased by 7.9% at constant prices (+10.8% at current prices), and their proportion in total sales of industrial enterprises stood at 47.8% (at current prices).

Sales from industrial activity of foreign-controlled enterprises were 10.2% up at constant prices (+12.8% at current prices), and their proportion in total sales stood at 58.0% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 7.6% at constant prices (+10.4% at current prices) and made up 73.1% of total sales of these enterprises (current prices).

The average number of persons employed*) in the industry went up by 1.6% in August 2007 (+18.2 thousand persons) year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+8.4%), ‘manufacture of machinery and equipment’ (+6.0%) and ‘manufacture of transport equipment’ (+4.3%). Employment decreased most in ‘manufacture of leather and leather products’ (-9.6%), ‘manufacture of textiles and textile products’ (-9.1%) and ‘mining and quarrying of energy producing materials’ (-5.8%).

The average monthly nominal wage in industry rose by 7.2% year-on-year and in August amounted to CZK 20,587. The average hourly wage increased by 7.8% and stood at CZK 152.7. Labour productivity in industry (sales per employee) rose by 4.7% and hourly labour productivity by 6.0%.

Industrial new orders in selected CZ-NACE activities concluded in August 2007 reached the value of CZK 147.9 billion (current prices), of which non-domestic industrial new orders made up CZK 93.2 billion. The y-o-y index of industrial new orders in total stood at 112.3%, the index of non-domestic industrial new orders was 112.9%. Non-domestic industrial new orders grew most in ‘manufacture of machinery and equipment‘ (+40.1%, contribution to the growth of industry in total 5.5 percentage points), ‘manufacture of motor vehicles, trailers and semi-trailers’ (+19.2%, contribution 5.3 p.p.) and manufacture of electrical machinery and apparatus (+18.8%, contribution 1.9 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of radio, television and communication equipment and apparatus’ (-10.6%, contribution -1.0 percentage points), ‘manufacture of wearing apparel; dressing and dyeing of fur’ (-29.9%, contribution -0.2 percentage points) and ‘manufacture of fabricated metal products, except of machinery and equipment’ (-1.4%, contribution -0.1 p.p.).
According to Eurostat News Release, the working days adjusted index of industrial production in the EU27 rose by 3.5% in July 2007 compared to July 2006. Among the EU27 member states for which the data were available, the highest increases were registered in Slovakia (+18.9%), Ireland (+13.9%), Lithuania (+12.2%) and Bulgaria (+11.6%). In Germany a 5.3% growth was recorded. The biggest decrease was recorded in Denmark (-0.4%).

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Note
Contact: Jan Ernest, tel: (+420) 274054188, e-mail: jan.ernest@csu.gov.cz
Data source: CZSO direct survey in enterprises with 20+ employees
End of data collection: 5 October 2007
End of data processing: 9 October 2007
Related publication: 8001-07 Industry of the Czech Republic ( /produkty/prumysl-ceske-republiky-prosinec-bifzzwj49k )


*) Starting from January 2007, in accordance with Eurostat methodology, monthly data on numbers of employed persons are published by the Czech Statistical Office as part of the short-term industrial statistics. Unlike the average registered number of employees published before, the new indicator includes also persons working under agreement for work performed outside the employment relationship and other employed persons who participate in work for the company without having an employment relationship with the company. The new figure represents full-time equivalent (FTE). This change has an impact on average wage and labour productivity calculations. The last mentioned indicator considers, in addition, the number of agency workers not included in the number of persons employed. Year-on-year comparability of the data published is ensured.