Industry - October 2008

In October 2008, seasonally adjusted industrial production decreased by 8.7%, compared to September 2008. Industrial production decreased by 7.6%, year-on-year. Sales from industrial activity at constant prices decreased by 7.9%, year-on-year. The value of industrial new orders decreased by 24.2%, year-on-year.
Seasonally adjusted industrial production in October 2008 was down by 8.7%, month-on-month. The trend grew by 0.3% (Table 6).
The year-on-year index of industrial production reached 92.4% in October 2008 (93.9%, working days adjusted). There was one working day less in October 2008 compared to October 2007. Seasonally adjusted index (including WDA) was 93.4%.

A decrease of industrial production (Table 5) was most affected by 'manufacture of transport equipment' (-14.7%, contribution to the drop of industry in total -3.2 percentage points). Industrial production dropped also in 'manufacture of basic metals and fabricated metal products' (-12.0%, contribution -1.4 p.p.) and 'manufacture of food products; beverages and tobacco' (-14.0%, contribution -1.1 p.p.).

The growth of industrial production was recorded only in 'manufacture of coke, refined petroleum products' (+82.4%, contribution to the growth of industry in total 1.3 percentage points) and 'manufacture of chemicals, chemical products and man-made fibres‘ (+5.5%, contribution 0.2 p.p.). Results in 'manufacture of coke, refined petroleum products' were affected by extremely low comparative base in previous year (standstill of production equipment).

In October 2008, production increased only in main industrial grouping 'energy' (+5.8%). A decrease was recorded in: 'consumer non-durables' (-11.3%), 'capital goods' (-11.0%), 'intermediate goods' (-7.1%) and 'consumer durables' (-3.8%)

Revenues from industrial activity at constant prices (the year 2000) dropped by 7.9%, y-o-y (+8.2% at current prices), WDA they decreased by 6.3%, SA by 7.0%. The biggest drop of sales from industrial activity was contributed to by 'manufacture of transport equipment' (-14.7%, contribution to the drop of industry in total -3.2 percentage points), 'manufacture basic metals and fabricated metal products' (-11.6%, contribution -1.2 p.p.) and 'manufacture of food products; beverages and tobacco' (-13.5%, contribution -1.0 p.p.). The increase of revenues from industrial activity was most contributed to by 'manufacture of coke, refined petroleum products' (+35.9%, contribution to the growth of industry in total 0.5 percentage points), 'manufacture of chemicals, chemical products and man-made fibres‘ (+4.0%, contribution 0.2 p.p.) and ‘manufacture of electrical and optical equipment’ (+0.8%, contribution 0.1 p.p.).

Direct export revenues of industrial enterprises were 6.5% down at constant prices, (-12.3% at current prices). Their contribution to total revenues of industrial enterprises stood at 47.2% (current prices).

Revenues from industrial activity of foreign-controlled enterprises decreased by 8.6% at constant prices (-10.0% at current prices). Their contribution to total revenues (at current prices) stood at 58.7%. Direct export sales of industrial foreign-controlled enterprises decreased by 7.5% at constant prices (-12.9% at current prices) and made up 75.1% of total revenues of these enterprises (at current prices).
The average number of persons employed in industry decreased in October 2008 by 26.2 thousand persons, y-o-y (i.e. -2.2%). Employment decreased most in 'manufacture of textiles and textile products' (-15.0%), 'manufacture of leather and leather products' (-10.5%), in 'electricity, gas and water supply' (-7.5%), 'manufacture of other non-metallic mineral products' (-6.6%), 'manufacturing n.e.c.' (-6.5%) and 'manufacture of wood and wood products' (-6.1%). Increases in average number of persons employed were registered in 'manufacture of transport equipment' (+2.0%), 'manufacture of coke, refined petroleum products' (+1.2%) and 'manufacture of electrical and optical equipment' (+0.9%).

The average monthly nominal wage in October 2008 amounted to CZK 22,807 and rose by 5.7%, y-o-y. The average hourly wage increased by 11.8% and stood at CZK 152.8. Labour productivity in industry decreased by 5.1% and hourly labour productivity was by 0.4% higher. These results were affected by lower number of working days (-1 day). The number of hours worked dropped by 7.5%.

Industrial new orders in selected CZ-NACE activities concluded in October 2008 reached the value of CZK 145.9 billion at current prices, of which non-domestic industrial new orders made up CZK 89.4 billion. The y-o-y index of industrial new orders in total stood at 75.8%, the index of non-domestic industrial new orders was 78.9%. Non-domestic industrial new orders dropped most in ‘manufacture of motor vehicles, trailers and semi-trailers' (-27.2%, contribution -8.9 p.p.), 'manufacture of electrical machinery and apparatus' (-29.4%, contribution -3.2 p.p.) and 'manufacture of machinery and equipment' (-18.3%, contribution -2.9 p.p.). Non-domestic industrial new orders rose only in 'manufacture of other transport equipment' (+11.9%, contribution +0.2 p.p.).
According to Eurostat News Release, working day adjusted industrial production in the EU27 decreased by 2.1% in September 2008 compared to September 2007. Among the EU27 member states, for which the data were available, the highest increases were registered in Lithuania (+7.3%), Slovakia (+5.1%) and Ireland (+3.9%). A decrease was reported in Germany (-2.2%). The biggest decrease was recorded in Spain (-11.1%).

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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: 4 December 2008
End of data processing: 9 December 2008
Related publication: 8001-08 Industry of the Czech Republic
( http://www.czso.cz/csu/2008edicniplan.nsf/p/8008-8 )