Industry - December 2007

In December 2007, seasonally adjusted industrial production was on the same level, m-o-m, as in November 2007. Industrial production grew by 2.9%, year-on-year. Sales from industrial activity at constant prices rose by 2.4%, year-on-year. The value of industrial new orders decreased by 2.2%, year-on-year.
Industrial production in 2007 grew by 8.2%, year-on-year. Sales from industrial activity at constant prices rose by 9.3%, year-on-year. The value of industrial new orders increased by 9.8%, year-on-year.
Seasonally adjusted industrial production in December 2007 was the same, month-on-month. The trend grew by 0.4% (Table 5).

The year-on-year index of industrial production reached 102.9% in December, (or 104.7% working days adjusted, WDA). There was one working day less in December 2007 compared to December 2006. Seasonally and working days adjusted index was 105.1%. These results were affected also by the increased number of persons on holidays at Christmas time (the number of hours worked dropped, y-o-y, by 4.3%).
The growth of industrial production (Table 6) was most contributed to by 'manufacture of transport equipment' (+11.3%, contribution to the growth of industry in total 2.1 percentage points), 'manufacture of electrical and optical equipment' (+9.4%, contribution 1.6 p. p.) and 'manufacture of coke, refined petroleum products' (+14.3%, contribution 0.6 p.p.). In contrast, a decrease was recorded for 'manufacture of food products; beverages and tobacco' (-7.2%, contribution -0.6 p.p.), 'manufacture of chemicals, chemical products and man-made fibres' (-9.4%, contribution -0.4 p.p.) and 'manufacture of basic metals and fabricated metal products' (-3.4%, contribution -0.4 p.p.).

In December, an increase of production was recorded for the following main industrial groupings: ‘consumer durables’ (+29.6%), ‘energy’ (+7.1%) and ‘capital goods’ (+7.0%). A decrease was recorded for production of ‘consumer non-durables’ (-9.9%) and ‘intermediate goods’ (-1.1%).

Sales from industrial activity at constant prices (of the year 2000) rose by 2.4% (+3.8% at current prices), by 4.2% WDA, or by 4.9% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of transport equipment’ (+11.2%, contribution to the growth of industry in total 2.1 percentage points), ‘manufacture of electrical and optical equipment’ (+5.1%, contribution 0.9 p.p.) and ‘electricity, gas and water supply’ (+7.4%, contribution 0.6 p.p.). Sales from industrial activity decreased in 'manufacture of food products; beverages and tobacco' (-8.1%, contribution -0.7 p.p.), 'manufacture of chemicals, chemical products and man-made fibres' (-10.2%, contribution -0.5 p.p.) and 'manufacture of basic metals and fabricated metal products' (-3.2%, contribution -0.3 p.p.).
Direct export sales of industrial enterprises increased by 1.9% at constant prices (+0.5% at current prices), and their proportion in total sales of industrial enterprises stood at 44.4% (at current prices).
Sales from industrial activity of foreign-controlled enterprises were 4.5% up at constant prices (+4.2% at current prices), and their contribution to total sales made 56.0% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 3.2% at constant prices (+1.5% at current prices) and made up 74.2% of total sales of these enterprises (current prices).

The average number of persons employed*) in the industry went up by 1.2% in December 2007 (+14.0 thousand persons), year-on-year. In December, increases in average number of persons employed were registered in ‘manufacture of rubber and plastic products’ (+6.9%), ‘manufacture of transport equipment’ (+5.8%) and ‘manufacture of machinery and equipment’ (+4.7%). Employment decreased most in ‘manufacture of textiles and textile products’ (-8.7%), ‘manufacture of leather and leather products’ (-5.8%) and ‘mining and quarrying except energy producing materials’ (-5.2%).

The average monthly nominal wage in industry rose by 5.2%, year-on-year, and in December amounted to CZK 22,077. The average hourly wage increased by 11.3% and stood at CZK 195.2. Labour productivity in industry (sales per employee) rose by 0.5% and hourly labour productivity by 7.0%.

Industrial new orders in selected CZ-NACE activities concluded in December 2007 reached the value of CZK 136.3 billion (current prices), of which non-domestic industrial new orders made up CZK 87.0 billion. The y-o-y index of industrial new orders in total stood at 97.8%, the index of non-domestic industrial new orders was 97.6%. Non-domestic industrial new orders grew most in ‘manufacture of machinery and equipment‘(+18.0%, contribution to the growth of industry in total 2.3 percentage points), ‘manufacture of chemicals, chemical products and man-made fibres’ (+9.7%, contribution 0.6 p.p.) and ‘manufacture of medical, precision and optical instruments, watches and clocks’ (+10.1%, contribution 0.3 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of basic metals‘ (-20.5%, contribution -1.9 percentage points), ‘manufacture of office machinery and computers’ (-32.1%, contribution -1.7 percentage points) and ‘manufacture of radio, television and communication equipment and apparatus’ (-11.9%, contribution -0.9 percentage points).
The year-on-year index of industrial production reached 108.2% in 2007. Sales from industrial activity at constant prices (of the year 2000) rose by 9.3% in 2007. The average number of persons employed in the industry went up by 1.8% in 2007 (+21.1 thousand persons), year-on-year. The average monthly nominal wage in industry rose by 7.4%, year-on-year, and in 2007 amounted to CZK 21,048. In 2007, the value of industrial new orders grew by 9.8%.
According to Eurostat News Release, the working days adjusted index of industrial production in the EU27 rose by 2.8% in November 2007 compared to November 2006. Among the EU27 member states for which the data were available, the highest increases were registered in Ireland (+13.8%), Slovakia (+13.2) and the Finland (+10.6%). For Germany a 4.9% growth was reported, whereas in Italy the index decreased by 2.4%. In December 2007 industrial production in the EU27 grew by 1.2%.

Analysis - Industry in the fourth quarter of 2007

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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: 7 February 2008
End of data processing: 11 February 2008
Related publication: 8001-07 Industry of the Czech Republi c ( /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.