Industry - July 2008

In July 2008, seasonally adjusted industrial production decreased by 0.8%, compared to June 2008. Industrial production grew by 6.7%, year-on-year. Sales from industrial activity at constant prices increased by 7.0%, year-on-year. The value of industrial new orders increased by 0.6%, year-on-year.
Seasonally adjusted industrial production in July 2008 was down by 0.8%, month-on-month. The trend grew by 0.1% (Table 6).

The year-on-year index of industrial production reached 106.7% in July 2008 (100.6%, seasonally adjusted). There were three working days more in July 2008 compared to July 2007. Seasonally adjusted index (including WDA) was 101.6%. The growth of industrial production (Table 5) was most contributed to by 'manufacture of electrical and optical equipment' (+20.1%, contribution to the growth of industry in total 2.7 percentage points), 'manufacture of transport equipment' (+5.8%, contribution 1.2 p.p.) and 'manufacture of basic metals and fabricated metal products' (+8.8%, contribution 1.1 p.p.). A decrease of industrial production was recorded in 'manufacture of textiles and textile products' (-9.7%, contribution to the drop of industry in total -0.2 percentage points), 'manufacture of wood and wood products' (-10.4%, contribution -0.2 p.p.) and 'manufacture of food products; beverages and tobacco' (-1.4%, contribution -0.1 p.p.).

In July 2008, production increased in main industrial groupings: 'consumer durables' (+38.6%), 'intermediate goods' (+8.8%), 'capital goods' (+6.0%) and 'energy' (+1.3%). A decrease was recorded in 'consumer non-durables' (-1.1%).

Revenues from industrial activity at constant prices (of the year 2000) rose by 7.0%, y-o-y (+4.2% at current prices), WDA they increased by 0.8%, SA by 1.7%. The increase of revenues from industrial activity was most contributed to by ‘manufacture of electrical and optical equipment’ (+20.0%, contribution to the growth of industry in total 3.0 p.p.), 'manufacture of transport equipment' (+5.7%, contribution 1.3 p.p.) and 'manufacture of basic metals and fabricated metal products' (+8.5%, contribution 0.9 p.p.) and 'manufacture of basic metals and fabricated metal products' (+8.5%, contribution 1.3 p.p.). The drop of sales from industrial activity was contributed to by 'manufacture of wood and wood products' (-10.4%, contribution -0.2 p.p.), 'manufacture of textiles and textile products' (-10.1%, contribution -0.2 p.p.) and 'manufacture of food products; beverages and tobacco' (-1.6%, contribution -0.1 p.p.).

Direct export revenues of industrial enterprises were 11.0% up at constant prices, (-0.4% at current prices). Their contribution to total revenues of industrial enterprises stood at 46.3% (current prices).

Revenues from industrial activity of foreign-controlled enterprises increased by 7.9% at constant prices (+2.6% at current prices). Their contribution to total revenues (at current prices) stood at 58.6%. Direct export sales of industrial foreign-controlled enterprises increased by 11.5% at constant prices (+0.6% at current prices) and made up 75.8% of total revenues of these enterprises (at current prices).

The average number of persons employed in industry increased in July 2008 by 7.6 thousand persons, y-o-y (i.e. + 0.6%). Increases in average number of persons employed were registered in 'manufacture of basic metals and fabricated metal products' (+4.4%), 'manufacture of electrical and optical equipment' (+4.4%), and in 'manufacture of transport equipment' (+4.3%). Employment decreased most in 'manufacture of textiles and textile products' (-12.7%), 'manufacture of coke, refined petroleum products' (-8.2%) and in 'electricity, gas and water supply' (-6.3%).

The average monthly nominal wage in July 2008 amounted to CZK 23,140 and rose by 9.2%, y-o-y. The average hourly wage decreased by 0.1% and stood at CZK 169.3. Labour productivity in industry increased by 6.2% and hourly labour productivity was by 2.8% lower. These results were affected by bigger number of working days (+3 days), which is attested to the increased number of hours worked (+10.0%).

Industrial new orders in selected CZ-NACE activities concluded in July 2008 reached the value of CZK 143.9 billion at current prices, of which non-domestic industrial new orders made up CZK 90.9 billion. The y-o-y index of industrial new orders in total stood at 100.6%, the index of non-domestic industrial new orders was 99.0 %. Non-domestic industrial new orders dropped most in 'manufacture of electrical machinery and apparatus' (-23.2%, contribution -2.9 p.p.), 'manufacture of office machinery and computers' (-43.1%, contribution -1.9%) and ‘manufacture of machinery and equipment' (-5.6%, contribution -1.7 p.p.). Non-domestic industrial new orders rose most in 'manufacture of radio, television and communication equipment and apparatus' (+106.4%, contribution +6.2 p.p.), 'manufacture of other transport equipment' (+33.3%, contribution +0.5 p.p.) and in 'manufacture of chemicals and chemical products' (+2.7%, contribution +0.2 p.p.).
According to Eurostat News Release, working day adjusted industrial production in the EU27 decreased by 0.3% in June 2008 compared to June 2007. Among the EU27 member states for which the data were available, the highest increases were registered in Poland (+7.3%), Slovakia (+6.3%) and Ireland (+6.1%). A growth was reported for Germany (+ 0.9%). The biggest decrease was recorded in Spain (-9.0%).

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Note
Contact: Anna Simonová, tel: (+420) 274052265, E-mail: anna.simonova@csu.gov.cz
Data source: CZSO direct survey in enterprises with 20+ employees
End of data collection: 3 September 2008
End of data processing: 5 September 2008
Related publication: 8001-08 Industry of the Czech Republic
( http://www.czso.cz/csu/2008edicniplan.nsf/p/8008-8 )