Industry - October 2005

In October 2005, seasonally adjusted industrial production was by 0.9% up month-on-month. The trend grew by 0.7% month-on-month (Table 5).

The year-on-year industrial production index reached 106.3%. Sales in industry at constant prices (the year 2000) rose by 10.0%.

Industrial production increased most in the following CZ-NACE activities:
- ‘manufacture of transport equipment’
- ‘manufacture of rubber and plastic products’
- ‘manufacturing n.e.c.’

The largest decreases in industrial production were recorded for:
- ‘electricity, gas and water supply’
- ‘manufacture of textiles and textile products’
- ‘mining and quarrying, except of energy producing materials’

As for the main industrial groupings, increases in production were recorded for ‘intermediate goods’ (+9.9%), ‘consumer durables’ (+9.8%), ‘capital goods’ (+6.0%) and ‘consumer non-durables’ (+4.0%), while production of ‘energy’ decreased (-0.7%).

High growth in ’manufacture of transport equipment’ (+30.8%), ‘manufacture of wood and wood products’ (+15.1%) and ‘mining and quarrying, except of energy producing materials’ (+13.6%) contributed to the increase of total sales in industry.

Direct export sales of industrial enterprises rose by +9.7% at constant prices (+4.6% at current prices), and their proportion sales in total sales of industrial enterprises stood at 48.2% (current prices). The biggest increases in direct export sales at constant prices were recorded for ‘mining and quarrying, except of energy producing materials’ (+30.8%), ‘electricity, gas and water supply’ (+29.6%) and ‘manufacture of food products, beverages and tobacco’ (+27.8%). The direct export sales dropped in ‘mining and quarrying of energy producing materials’ (-17.7%), ‘manufacture leather and leather products’ (-12.4%) and ‘manufacture of coke, refined petroleum products’
(- 6.7%).

Industrial foreign-controlled enterprises raised their sales by +16.8% at constant prices (+12.7% at current prices), and their proportion in total sales stood at 55.9% (current prices). Their direct export sales increased by +10.4% at constant prices (+5.1% at current prices) and accounted for 73.6% of the total sales of these enterprises at current prices.

The average number of employees in the industry went up by 0.2% (+2.1 thousand persons) year-on-year. Year-on-year, the employment increased in ‘manufacture of rubber and plastic products’, ‘manufacture of transport equipment’ and ‘manufacture of machinery and equipment’; it decreased most in ‘electricity, gas and water supply’, ‘manufacture of textiles and textile products’ and ‘mining and quarrying, except of energy producing materials’.

The average monthly nominal wage amounted to CZK 18 136, rising by +3.8% year-on-year. The average hourly wage increased by +2.4% to stand at CZK 127.5. Labour productivity (sales per employee) increased by +9.8% and productivity per hour by +8.2%. Unit wage costs were -5.5% down.

New orders in industrial enterprises in selected CZ-NACE activities were worth CZK 125.7 billion (current prices), of which non-domestic orders accounted for CZK 77.8 billion. The year-on-year index of new orders in total was 108.7%, of which the index of new non-domestic orders was 105.0%. The value of new non-domestic orders increased most in ‘manufacture of radio, television and communication equipment and apparatus’ (index 141.6%), ‘manufacture of medical, precision and optical instruments, watches and clocks‘ (index 134.2%) and ‘manufacture of machinery and equipment’ (index 129.2%). The volume of new non-domestic orders dropped in ‘manufacture of wearing apparel, dressing and dyeing of fur’ (index 85.4%), ‘manufacture of fabricated metal products, except machinery and equipment‘ (index 87.1%) and ‘manufacture of textiles and textile products‘ (index 96.5%).

During a regular check of previously published results of the Industrial production index (IPI), the CZSO found an error, which occurred at processing of input data for July 2005. The error influenced the published year-on-year IPI for July: instead of 111.2% published, there should be 107.2%, which is correct. Corrected data for July will be brought out in the CZSO publication “Industry of the Czech Republic” for October 2005, which will be put out by the end of 2005.

Within the internal processes of systematic revision of quality of statistical information published it turned out that a set of products-representatives (on which the calculation of monthly IPI values is based) is rather outdated. Thus, the CZSO decided to use for calculation of IPI for months of the year 2006 a more suitable method, about details of which a necessary methodological note will be published in due time. Since some insignificant inconsistencies occurred in IPI presentations for months of the year 2005, the CZSO will release a revised IPI time series on 10 March 2006 at the latest (in the past it was not published until June).

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Note
Contact: Josef Vlášek, phone (+420) 274052192, e-mail josef.vlasek@csu.gov.cz
Data source: CZSO direct survey in enterprises
End of data collection: 5 December 2005
End of data processing: 7 December 2005
Related publications: 8001-05 Industry of the Czech Republic ( http://www.czso.cz/eng/edicniplan.nsf/8001-05 )
Table 1 – preliminary data. Final data for January to October 2005 will be published in March 2006.
Tables 2,3,4 – Data for individual months of 2005 will be revised in each subsequent processing; final data will be published in June 2006 .