Industry - December 2008

In December 2008, seasonally adjusted industrial production decreased by 0.5%, month-on-month, and by 14.6%, year-on-year. Sales from industrial activity at constant prices dropped by 13.7%, year-on-year. The value of industrial new orders was 24.8% down, year-on-year.
Industrial production in 2008 grew by 0.4%, year-on-year. Sales from industrial activity at constant prices rose by 0.1%, year-on-year. The value of industrial new orders decreased by 5.9%, year-on-year.
Seasonally adjusted industrial production in December 2008 was down by 0.5%, month-on-month. The trend grew by 0.3% (Table 6).
The year-on-year index of industrial production reached 85.4% in December 2008 (82.8%, working days adjusted). There were two working days more in December 2008 compared to December 2007. Seasonally adjusted index (including WDA) was 83.5%.

A decrease of industrial production (Table 5) was most affected by 'manufacture of transport equipment' (-20.7%, contribution to the drop of industry in total -4.2 percentage points), 'manufacture of electrical and optical equipment' (-15.5%, contribution -2.8 p.p.) and 'manufacture of basic metals and fabricated metal products' (-25.1%, contribution -2.7 p.p.).

In December 2008, production increased only in the main industrial grouping 'consumer non-durables' (+0.9%). A decrease was recorded in: 'consumer durables' (-54.8%), 'intermediate goods' (-17.2%), 'capital goods' (-15.0%) and 'energy' (-8.2%).

Revenues from industrial activity at constant prices dropped by 13.7%, y-o-y (-12.1% at current prices), WDA they decreased by 14.1%, SA by 16.1%. The drop of sales from industrial activity was most contributed to by 'manufacture of transport equipment' (-21.0%, contribution to the drop of industry in total -4.4 percentage points), 'manufacture of electrical and optical equipment' (-15.7%, contribution -2.9 p.p.) and 'manufacture of basic metals and fabricated metal products' (-22.6%, contribution -2.0 p.p.). The increase of revenues from industrial activity was contributed to only by 'electricity, gas and water supply' (+1.0%, contribution to the growth of industry in total 0.1 percentage points).

Direct export revenues of industrial enterprises were 15.1% down at constant prices, (-15.4% at current prices). Their contribution to total revenues of industrial enterprises stood at 41.8% (current prices).

Revenues from industrial activity of foreign-controlled enterprises decreased by 16.1% at constant prices (-13.5% at current prices). Their contribution to total revenues (at current prices) stood at 54.2%. Direct export sales of industrial foreign-controlled enterprises decreased by 18.5% at constant prices (-18.2% at current prices) and made up 71.4% of total revenues of these enterprises (at current prices).

The average number of persons employed in industry decreased in December 2008 by 56.0 thousand persons, y-o-y (i.e. -4.7%). Employment decreased most in 'manufacture of textiles and textile products' (-18.3%), 'manufacture of leather and leather products' (-10.5%), 'manufacturing n.e.c.' (-9.8%), 'manufacture of other non-metallic mineral products' (-9.0%), 'manufacture of wood and wood products' (-7.5%) and in 'electricity, gas and water supply' (-7.2%).

The average monthly nominal wage in December 2008 amounted to CZK 24,394 and rose by 9.8%, y-o-y. The average hourly wage increased by 8.2% and stood at CZK 212.5. Labour productivity in industry decreased by 8.1% and hourly labour productivity was by 9.1% lower. These results were affected by higher number of working days (+2 days). The number of hours worked dropped by 3.3%.

Industrial new orders in selected CZ-NACE activities concluded in December 2008 reached the value of CZK 106.4 billion at current prices, of which non-domestic industrial new orders made up CZK 62.8 billion. The y-o-y index of industrial new orders in total stood at 75.2%, the index of non-domestic industrial new orders was 70.8%. Non-domestic industrial new orders dropped most in ‘manufacture of motor vehicles, trailers and semi-trailers' (-50.0%, contribution -16.9 p.p.), 'manufacture of machinery and equipment' (-33.6%, contribution -5.1 p.p.) and 'manufacture of electrical machinery and apparatus' (-41.9%, contribution -4.0 p.p.). Non-domestic industrial new orders rose only in 'manufacture of basic metals' (+18.1%, contribution +1.3 p.p.) and 'manufacture of fabricated metal products, except of machinery and equipment' (+4.4%, contribution +0.3 p.p.). The value of cancelled new orders increased.
The year-on-year index of industrial production reached 100.4% in 2008. Revenues from industrial activity at constant prices (the year 2000) increased by 0.1% in 2008. The average number of persons employed in industry decreased in 2008 by 1.6 thousand persons, y-o-y (i.e. -0.1%). The average monthly nominal wage in 2008 amounted to CZK 22,780 and rose by 8.2%, y-o-y. The value of new orders decreased by 5.9% in 2008.
According to Eurostat News Release, working day adjusted industrial production in the EU27 decreased by 8.1% (WDA) in November 2008 compared to November 2007. Among the EU27 member states, for which the data were available, the highest decreases were registered in Estonia (-17.4%), Spain (-15.1%) and Latvia (-13.7%). A decrease was reported in the Czech Republic (-13.0%), Slovakia (-7.2%) and Germany (-6.6%). The increase was recorded only in Ireland (+2.6%).

Analysis - Development of industry in the fourth quarter of 2008 and over the year 2008

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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: 4 February 2009
End of data processing: 9 February 2009
Related publication: 8001-08 Industry of the Czech Republic
( http://www.czso.cz/csu/2008edicniplan.nsf/p/8008-8 )