Industry - November 2007

In November 2007, seasonally adjusted industrial production was on the same level, m-o-m, as in October 2007. Industrial production grew by 6.7%, year-on-year. Sales from industrial activity at constant prices rose by 7.6%, year-on-year. The value of industrial new orders increased by 4.0%, year-on-year.
Seasonally adjusted industrial production in November 2007 was the same, month-on-month. The trend grew by 0.5% (Table 5).

The year-on-year index of industrial production reached 106.7% in November, (or 104.9% working days adjusted, WDA). There was one working day more in November 2007 compared to November 2006. Seasonally and working days adjusted index was 105.6%. In year-on-year comparison, industrial production has been growing since September 2002, i.e. for 63 months.
The growth of industrial production (Table 6) was most contributed to by 'manufacture of transport equipment' (+21.2%, contribution to the growth of industry in total 4.2 percentage points), 'manufacture of electrical and optical equipment' (+11.2%, contribution 2.1 p. p.) and 'manufacture of machinery and equipment' (+11.8%, contribution 0.8 p.p.).
A marked decrease was recorded for 'manufacture of coke, refined petroleum products' (-26.8%, contribution -1.0 p.p.), which came from a planned outage time of processing equipment. A drop was reported also for 'manufacture of chemicals, chemical products and man-made fibres' (-7.9%, contribution -0.3 p.p.) and 'manufacture of food products; beverages and tobacco' (-2.9%, contribution -0.2 p.p.).

In November, an increase of production was recorded for the following main industrial groupings: ‘consumer durables’ (+25.4%), ‘capital goods’ (+17.2%) and ‘intermediate goods’ (+1.5%). A decrease was recorded for production of ‘energy’ (-5.2%) and ‘consumer non-durables’ (-2.9%).

Sales from industrial activity at constant prices (of the year 2000) rose by 7.6% (+8.6% at current prices), by 5.9% WDA, or by 6.7% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of transport equipment’ (+21.1%, contribution to the growth of industry in total 4.4 percentage points), ‘manufacture of electrical and optical equipment’ (+11.4%, contribution 2.1 p.p.) and ‘manufacture of machinery and equipment’ (+11.8%, contribution 1.0 p.p.). Sales from industrial activity decreased in 'manufacture of coke, refined petroleum products' (-37.5%, contribution -0.8 p.p.), for 'manufacture of chemicals, chemical products and man-made fibres' (-8.1%, contribution -0.4 p.p.) and 'manufacture of food products; beverages and tobacco' (-3.1%, contribution -0.2 p.p.).

Direct export sales of industrial enterprises increased by 11.0% at constant prices (+10.2% at current prices), and their proportion in total sales of industrial enterprises stood at 50.2% (at current prices).

Sales from industrial activity of foreign-controlled enterprises were 10.4% up at constant prices (+10.6% at current prices), and their contribution to total sales made 60.5% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 11.9% at constant prices (+11.1% at current prices) and made up 76.7% of total sales of these enterprises (current prices).

The average number of persons employed*) in the industry went up by 1.2% in November 2007 (+14.1 thousand persons), year-on-year. Employment in the industry has been on the increase since October 2005, i.e. for 26 months. Increases were registered in ‘manufacture of rubber and plastic products’ (+7.9%), ‘manufacture of transport equipment’ (+5.8%) and ‘manufacture of machinery and equipment’ (+4.6%). Employment decreased most in ‘manufacture of leather and leather products’ (-9.4%), ‘manufacture of textiles and textile products’ (-8.9%), and ‘mining and quarrying except energy producing materials’ (-6.1%).

The average monthly nominal wage in industry rose by 6.2%, year-on-year, and in November amounted to CZK 24,362. The average hourly wage increased by 4.9% and stood at CZK 160.2. Labour productivity in industry (sales per employee) rose by 5.5% and hourly labour productivity by 5.0%.

Industrial new orders in selected CZ-NACE activities concluded in November 2007 reached the value of CZK 164.7 billion (current prices), of which non-domestic industrial new orders made up CZK 105.7 billion. The y-o-y index of industrial new orders in total stood at 104.0%, the index of non-domestic industrial new orders was 103.3%. Non-domestic industrial new orders grew most in ‘manufacture of motor vehicles, trailers and semi-trailers’ (+10.2%, contribution to the growth of industry in total 3.0 percentage points), ‘manufacture of machinery and equipment‘ (+11.1%, contribution 1.6 p.p.) and manufacture of electrical machinery and apparatus (+14.2%, contribution 1.4 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of radio, television and communication equipment and apparatus’ (-24.1%, contribution -2.2 percentage points), ‘manufacture of office machinery and computers’ (-21.1%, contribution -1.3 percentage points) and ‘manufacture of basic metals’ (-7.6%, contribution -0.7 p.p.).
According to Eurostat News Release, the working days adjusted index of industrial production in the EU27 rose by 3.8% in October 2007 compared to October 2006. Among the EU27 member states for which the data were available, the highest increases were registered in Slovakia (+17.2%), Ireland (+10.3) and Bulgaria (+9.9%). For Germany a 6.9% growth was reported, whereas in Latvia the index decreased by 3.3%. In November 2007 industrial production in the EU27 grew by 2.6%.

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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: 9 January 2008
End of data processing: 11 January 2008
Related publication: 8001-07 Industry of the Czech Republic ( /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.