Industry - October 2007

In October 2007, seasonally adjusted industrial production increased by 2.0%, compared to September 2007. Industrial production grew by 8.4%, year-on-year. Sales from industrial activity at constant prices rose by 9.3%, year-on-year. The value of industrial new orders increased by 20.5%, year-on-year.
Seasonally adjusted industrial production in October 2007 was 2.0% up, month-on-month. The trend grew by 0.5% (Table 5).

The year-on-year index of industrial production reached 108.4% in October, (or 106.6% working days adjusted, WDA). There was one working day more in October 2007 compared to October 2006. Seasonally and working days adjusted index was 107.1%.
The growth of industrial production (Table 6) was most contributed to by 'manufacture of transport equipment' (+20.3%, contribution to the growth of industry in total 3.9 percentage points), 'manufacture of electrical and optical equipment' (+15.3%, contribution 2.6 p. p.) and 'manufacture of machinery and equipment' (+20.1%, contribution 1.3 p.p.).
A marked decrease was recorded for 'manufacture of coke, refined petroleum products' (-42.5%, contribution -1.3 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' (-7.2%, contribution -0.3 p.p.) and 'manufacture of basic metals and fabricated metal products' (-2.3%, contribution -0.3 p.p.).

In October, an increase of production was recorded for the following main industrial groupings: ‘consumer durables’ (+32.8%) and ‘capital goods’ (+16.8%), ‘intermediate goods’ (+4.9%) and ‘consumer non-durables’ (+3.1%). A decrease was recorded for production of ‘energy’ (-7.9%).

Sales from industrial activity at constant prices (of the year 2000) rose by 9.3% (+10.3% at current prices), by 7.6% WDA, or by 8.2% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of transport equipment’ (+20.3%, contribution to the growth of industry in total 4.1 percentage points), ‘manufacture of electrical and optical equipment’ (+10.9%, contribution 1.9 p.p.) and ‘manufacture of machinery and equipment’ (+20.0%, contribution 1.6 p.p.). Sales from industrial activity decreased in 'manufacture of coke, refined petroleum products' (-42.6%, contribution -0.8 p.p.), for 'manufacture of chemicals, chemical products and man-made fibres' (-6.9%, contribution -0.3 p.p.) and 'mining and quarrying of energy producing materials' (-6.5%, contribution -0.1 p.p.).

Direct export sales of industrial enterprises increased by 12.8% at constant prices (+12.6% at current prices), and their proportion in total sales of industrial enterprises stood at 50.0% (at current prices).

Sales from industrial activity of foreign-controlled enterprises were 11.8% up at constant prices (+12.2% at current prices), and their contribution to total sales made 60.7% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 13.4% at constant prices (+13.1% at current prices) and made up 76.1% of total sales of these enterprises (current prices).

The average number of persons employed*) in the industry went up by 1.1% in October 2007 (+12.2 thousand persons), year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+7.9%), ‘manufacture of transport equipment’ (+5.6%) and ‘manufacture of machinery and equipment’ (+4.9%). Employment decreased most in ‘manufacture of textiles and textile products’ (-8.8%), ‘manufacture of leather and leather products’ (-8.8%) and ‘mining and quarrying of energy producing materials’ (-5.4%).

The average monthly nominal wage in industry rose by 9.3% year-on-year and in October amounted to CZK 21,608. The average hourly wage increased by 6.1% and stood at CZK 137.0. Labour productivity in industry (sales per employee) rose by 7.4% and hourly labour productivity by 4.1%.

Industrial new orders in selected CZ-NACE activities concluded in October 2007 reached the value of CZK 189.5 billion (current prices), of which non-domestic industrial new orders made up CZK 112.1 billion. The y-o-y index of industrial new orders in total stood at 120.5%, the index of non-domestic industrial new orders was 113.9%. Non-domestic industrial new orders grew most in ‘manufacture of motor vehicles, trailers and semi-trailers’ (+23.6%, contribution to the growth of industry in total 7.1 percentage points), ‘manufacture of machinery and equipment‘ (+21.2%, contribution 3.2 p.p.) and manufacture of electrical machinery and apparatus (+14.8%, contribution 1.7 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of office machinery and computers’ (-26.3%, contribution -1.5 percentage points), ‘manufacture of radio, television and communication equipment and apparatus’ (-12.7%, contribution -0.8 percentage points) and ‘manufacture of wearing apparel, dressing and dyeing of fur’ (-20.7%, contribution -0.1 p.p.).
According to Eurostat News Release, the working days adjusted index of industrial production in the EU27 rose by 3.1% in September 2007 compared to September 2006. Among the EU27 member states for which the data were available, the highest increases were registered in Slovakia (+15.3%), Bulgaria (+9.2%) and the Netherlands (+8.5%). For Germany a 6.6% growth was reported, whereas in Lithuania and Denmark the index decreased by 0.8% and 0.6%, respectively.

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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: 3 December 2007
End of data processing: 7 December 2007
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.