Industry - August 2008

In August 2008, seasonally adjusted industrial production increased by 0.5%, compared to July 2008. Industrial production dropped by 2.6%, year-on-year. Sales from industrial activity at constant prices decreased by 2.8%, year-on-year. The value of industrial new orders decreased by 10.0%, year-on-year.
Seasonally adjusted industrial production in August 2008 was up by 0.5%, month-on-month. The trend grew by 0.1% (Table 6).
The year-on-year index of industrial production reached 97.4% in August 2008 (101.7%, seasonally adjusted). There were two working days less in August 2008 compared to August 2007. Seasonally adjusted index (including WDA) was 102.5%. The growth of industrial production (Table 5) was positively affected by 'manufacture of electrical and optical equipment' (+11.0%, contribution to the growth of industry in total 1.6 percentage points), 'manufacture of chemicals, chemical products and man-made fibres' (+8.1%, contribution 0.4 p.p.) and 'manufacture of transport equipment' (+1.4%, contribution 0.2 p.p.). A decrease of industrial production was recorded in 'manufacture of food products; beverages and tobacco' (-13.8%, contribution to the drop of industry in total -1.3 percentage points), 'manufacture of basic metals and fabricated metal products' (-4.5%, contribution -0.6 p.p.) and 'manufacture of machinery and equipment' (-7.2%, contribution -0.5 p.p.).

In August 2008, production increased in main industrial groupings: 'consumer durables' (+21.8%). A decrease was recorded in 'consumer non-durables' (-11.2%), 'energy' (-3.8%), 'intermediate goods' (-3.2%) and 'capital goods' (-0.9%).

Revenues from industrial activity at constant prices (of the year 2000) dropped by 2.8%, y-o-y (+4.5% at current prices), WDA they increased by 1.6%, SA by 2.5%. The increase of revenues from industrial activity was positively affected by ‘manufacture of electrical and optical equipment’ (+6.1%, contribution to the growth of industry in total 1.0 percentage points), 'manufacture of chemicals, chemical products and man-made fibres' (+8.3%, contribution 0.4 p.p.) and 'manufacture of transport equipment' (+1.4%, contribution 0.3 p.p.). The biggest drop of sales from industrial activity was contributed to by 'manufacture of food products; beverages and tobacco' (-13.8%, contribution to the drop of industry in total -1.2 percentage points), 'manufacture of machinery and equipment' (-7.2%, contribution -0.7 p.p.) and 'manufacture of basic metals and fabricated metal products' (-4.8%, contribution -0.5 p.p.).

Direct export revenues of industrial enterprises were 1.6% up at constant prices, (-9.2% at current prices). Their contribution to total revenues of industrial enterprises stood at 45.1% (current prices).

Revenues from industrial activity of foreign-controlled enterprises decreased by 1.2% at constant prices (-5.1% at current prices). Their contribution to total revenues (at current prices) stood at 56.7%. Direct export sales of industrial foreign-controlled enterprises increased by 3.2% at constant prices (-7.3% at current prices) and made up 74.4% of total revenues of these enterprises (at current prices).

The average number of persons employed in industry decreased in August 2008 by 5.7 thousand persons, y-o-y (i.e. -0.5%). Employment decreased most in 'manufacture of textiles and textile products' (-12.5%), 'manufacture of leather and leather products' (-6.9%) and in 'electricity, gas and water supply' (-6.8%). Increases in average number of persons employed were registered in 'manufacture of transport equipment' (+4.8%), 'manufacture of electrical and optical equipment' (+3.2%) and 'manufacture of rubber and plastic products' (+1.9%).

The average monthly nominal wage in August 2008 amounted to CZK 21,420 and rose by 4.2%, y-o-y. The average hourly wage increased by 13.4% and stood at CZK 172.4. Labour productivity in industry decreased by 2.3% and hourly labour productivity was by 6.2% higher. These results were affected by lower number of working days (-2 days), which is attested to the decreased number of hours worked (-8.5%).

Industrial new orders in selected CZ-NACE activities concluded in August 2008 reached the value of CZK 136.7 billion at current prices, of which non-domestic industrial new orders made up CZK 88.0 billion. The y-o-y index of industrial new orders in total stood at 90.0%, the index of non-domestic industrial new orders was 91.5%. Non-domestic industrial new orders dropped most in ‘manufacture of motor vehicles, trailers and semi-trailers' (-13.7%, contribution -3.9 p.p.), 'manufacture of machinery and equipments' (-17.0%, contribution -2.9 p.p.) and 'manufacture of electrical machinery and apparatus' (-25.4%, contribution -2.8 p.p.). Non-domestic industrial new orders rose most in 'manufacture of radio, television and communication equipment and apparatus' (+50.3%, contribution +3.7 p.p.), in 'manufacture of medical, precision and optical instruments, watches and clocks' (+17.4%, contribution +0.4 p.p.) and 'manufacture of other transport equipment' (+23.0%, contribution +0.3 p.p.).
According to Eurostat News Release, working day adjusted industrial production in the EU27 decreased by 1.3% in July 2008 compared to June 2007. Among the EU27 member states for which the data were available, the highest increases were registered in Poland (+3.7%), Lithuania (+3.7%) and Romania (+3.0%). A growth was reported in Slovakia (+1.9%) and decrease in Germany (-0.5%). The biggest decrease was recorded in Latvia (-6.9%).

---

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: 2 October 2008
End of data processing: 6 October 2008
Related publication: 8001-08 Industry of the Czech Republic ( http://www.czso.cz/csu/2008edicniplan.nsf/p/8008-8 )