Industry - March 2008

In March 2008, seasonally adjusted industrial production decreased by 2.4%, compared to February 2008. Industrial production dropped by 2.1% year-on-year. Sales from industrial activity at constant prices decreased by 2.7% year-on-year. The value of industrial new orders fell by 4.9% year-on-year.
Seasonally adjusted industrial production in March 2008 was down 2.4% down, month-on-month. The trend grew by 0.3% (Table 6).
The year-on-year index of industrial production reached 97.9% in March 2008, which is the first decline after 66 months of permanent growth. This result was affected also by Easter holiday, high comparable base of March 2007 and by different number of working days. There were two working days less in March 2008 compared to March 2007. Working days adjusted (WDA) index was 101.5% and seasonally adjusted (SA) index was 101.9%. The decrease of industrial production (Table 5) was most contributed to by 'manufacture of food products; beverages and tobacco' (-11.5%, contribution to the drop of industry in total -0.9 percentage points), 'manufacture of textiles and textile products' (-15.8%, contribution -0.4 p. p.) and 'manufacture of basic metals and fabricated metal products' (-3.5%, contribution -0.4 p.p.). Industrial production increased in 'manufacture of electrical and optical equipment' (+8.7%, contribution to the growth of industry in total 1.2 percentage points), 'electricity, gas and water supply' (+1.9%, contribution 0.1 p. p.) and 'manufacture of chemicals, chemical products and man-made fibres' (+1.7%, contribution 0.1 p.p.) and 'manufacture of machinery and equipment' (+1.3%, contribution 0.1 p.p.).

In March 2008, production increased in main industrial groupings: 'consumer durables' (+17.5%) and 'capital goods' (+0.2%) A decrease was recorded in main industrial groupings: 'consumer non-durables' (-11.4%), 'intermediate goods' (-3.4%) and energy (-2.1%).

Revenues from industrial activity at constant prices (of the year 2000) dropped by 2.7%, y-o-y (-3.7% at current prices), WDA they increased by 0.9 and by 1.6% SA. The drop of revenues from industrial activity was most contributed to by 'manufacture of food products; beverages and tobacco' (-11.6%, contribution -0.8 p.p.), 'manufacture of basic metals and fabricated metal products' (-6.3%, contribution -0.7 p.p.) and 'manufacture of rubber and plastic products' (-5.9%, contribution -0.4 p.p.). Revenues from industrial activity rose only in 'manufacture of electrical and optical equipment' (+5.1%, contribution 0.8 p.p.), 'manufacture of machinery and equipment' (1.2%, contribution 0.1 p.p.) and manufacture of chemicals, chemical products and man-made fibres' (+1.4%, contribution 0.1 p.p.).

Direct export revenues of industrial enterprises dropped by 2.3% at constant prices, (-8.5% at current prices). Their contribution to total revenues of industrial enterprises stood at 47.8% (at current prices).
Revenues from industrial activity of foreign-controlled enterprises dropped by 3.1% at constant prices (-6.0% at current prices). Their contribution to total revenues (at current prices) stood at 59.4%. Direct export sales of industrial foreign-controlled enterprises dropped by 3.0% at constant prices (-9.3% 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 March 2008 by 26.2 thousand persons, y-o-y (i.e. + 2.2%). Increases in average number of persons employed were registered in 'manufacture of rubber and plastic products' (+8.7%), 'manufacture of transport equipment' (+7.5%) and in 'manufacture of electrical and optical equipment' (+6.1%). Employment decreased most in 'electricity, gas and water supply' (-10.5%), in 'manufacture of textiles and textile products' (-7.5%) and in 'manufacture of leather and leather products' (-3.4%).

The average monthly nominal wage in March 2008 amounted to CZK 22 321 and rose by 8.8%, y-o-y. The average hourly wage increased by 15.4% and stood at CZK 155.4. Labour productivity in industry dropped by 5.2% and hourly labour productivity was by 0.9% higher.

Industrial new orders in selected CZ-NACE activities concluded in March 2008 reached the value of CZK 158.0 billion at current prices, of which non-domestic industrial new orders made up CZK 99.3 billion. The y-o-y index of industrial new orders in total stood at 95.1%, the index of non-domestic industrial new orders was 91.0%. Non-domestic industrial new orders dropped most in 'manufacture of basic metals and fabricated metal products' (-22.2%, contribution -2.2 p.p.), 'manufacture of motor vehicles, trailers and semi-trailers' (-6.3%, contribution -1.9 p.p.) and 'manufacture of office machinery and computers' (-37.7%, contribution -1.9 p.p.). Non-domestic industrial new orders rose only in 'manufacture of radio, television and communication equipment and apparatus' (+14.7%, contribution 0.9 p.p.), 'manufacture of medical, precision and optical instruments' (+9.0%, contribution 0.2 p.p.) and 'manufacture of other transport equipment' (+5.1%, contribution 0.1%).
According to Eurostat New Release, working day adjusted industrial production in the EU27 rose by 3.3% in February 2008 compared to February 2007. Among the EU27 member states for which data were available, the highest increases were registered in Poland (+12.3%), Slovakia (+11.5%) and Lithuania (+11.1%). Germany reported a growth of 5.9%. The biggest decrease was recorded in Greece (-4.2%).

Analysis - Development of industry in the first quarter of 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: 2 May 2008
End of data processing: 6 May 2008
Related publication: 8001-08 Industry of the Czech Republic ( http://www.czso.cz/csu/2007edicniplan.nsf/p/8001-08 )