Industry - September 2006

In September 2006, seasonally adjusted industrial production was up by 1.6% month-on-month. The year-on-year industrial production index reached 105.8%. Sales from industrial activity at constant prices (of the year 2000) rose by 6.1%. Industrial new orders were up by 8.9% year-on-year.
Seasonally adjusted industrial production in September 2006 was up by 1.6% month-on-month. The trend grew by 0.5% (Table 5).

The year-on-year industrial production index reached 105.8% (or 107.6% working days adjusted, WDA; September 2006 had one working day less than September 2005). The growth of industrial production (Table 6) was most affected by ‘manufacture of transport equipment’ (+10.5%, contribution to the growth of industry in total 2.1 percentage points), ‘manufacture of electrical and optical equipment’ (+13.0%, contribution 1.8 p.p.) and ‘manufacture of machinery and equipment’ (+15.2%, contribution 1.0 p.p.). Decreases were recorded for ‘manufacture of food products, beverages and tobacco’ (-9.8%, contribution -0.9 p.p.), in which the drop was recorded mainly in meat and meat products, milk and diary products and in other food products. Further decreases were in ‘manufacture of other non-metallic mineral products’ (-2.7%, contribution -0.1 p.p.) and ‘manufacture of chemicals, chemical products and man-made fibres’ (-2.2%, contribution -0.1 p.p.).

As to the main industrial groupings, production increases were recorded for ‘consumer durables’ (+13.1%), ‘capital goods’ (+11.7%), ‘intermediate goods’ (+5.5%) and ‘energy’ (+4.2%). Production of ‘consumer non-durables’ decreased (-8.4%).

Sales from industrial activity at constant prices (of the year 2000) rose by 6.1% year-on-year (7.0% in current prices) or 8.5% working days adjusted, WDA). The increase of sales from industrial activity was most contributed to by ‘manufacture of transport equipment’ (+10.8%, contribution to the growth of industry in total 2.2 percentage points), ‘manufacture of electrical and optical equipment’ (+12.4%, contribution 1.9 p.p.) and ‘manufacture of machinery and equipment’ (+15.2%, contribution 1.2 p.p.). Sales from industrial activity decreased in ‘manufacture of food products, beverages and tobacco’ (-9.3%, contribution -0.8 p.p.), ‘electricity, gas and water supply’ (-3.3%, contribution -0.2 p.p.) and ‘manufacture of pulp, paper and paper products; publishing and printing’ (-3.6%, contribution -0.1 p.p.).

Direct export sales of industrial enterprises increased by 9.1% at constant prices (+9.4% at current prices), and their proportion in total sales of industrial enterprises was 49.7% (current prices).
Sales from industrial activity of foreign-controlled enterprises were up by 11.8% at constant prices (+12.6% at current prices), and their proportion in total sales stood at 59.6% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 11.7% at constant prices (+11.7% at current prices) and made up 76.9% of total sales of these enterprises at current prices.

The average number of employees in the industry went up by 1.2% in September (+13.4 thousand persons) year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+9.3%), ‘manufacture of basic metals and fabricated metal products’ (+7.0%), and ‘manufacture of electrical and optical equipment’ (+6.2%). Employment decreased most in ‘manufacture of textiles and textile products’ (-8.7%), ‘manufacture of food products, beverages and tobacco’ (-5.9%), and ‘electricity, gas and water supply’ (-5.9%).
The average monthly nominal wage in the industry rose by 4.5% year-on-year and amounted to CZK 18 758. The average hourly wage increased by 8.8% and was CZK 137.1. Labour productivity in industry (sales per employee) rose by 4.8% and hourly labour productivity by 9.1%. Unit wage costs were down by 0.3%.

Industrial new orders in selected CZ-NACE activities concluded in September reached the value of CZK 139.3 billion (current prices), of which non-domestic industrial new orders made up CZK 85.6 billion. The industrial new orders index (y-o-y) in total stood at 108.9% and was the lowest since the year beginning. The y-o-y non-domestic industrial new orders index increased by 6.3%. Non-domestic industrial new orders grew most in ‘manufacture of motor vehicles, trailers and semi-trailers‘ (+13.0%, contribution to the growth of industry in total 3.9 percentage points), ‘manufacture of machinery and equipment’ (+11.9%, contribution 1.6 p.p.), and ‘manufacture of office machinery and computers‘ (+30.2%, contribution 1.2 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of radio, television and communication equipment and apparatus‘ (-9.0%, contribution –0.7 p.p.), ‘manufacture of fabricated metal products except machinery and equipment‘ (-4.5%, contribution -0.4 p.p.), and ‘manufacture of pulp, paper and paper products; publishing and printing’ (-14.0%, contribution -0.4 p.p.). The volume of orders in selected CZ-NACE activities was CZK 371.0 billion at the end of September 2006 (index 124.0%).

Analysis - Development of the industry in the third quarter of 2006

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Note
Contact: Matějka Radek, phone (+420) 274054188, e-mail radek.matejka@csu.gov.cz
Data source: CZSO direct survey in enterprises
End of data collection: 2 November 2006
End of data processing: 6 November 2006
Related publication: 8001-06 Industry of the Czech Republic
Starting with the News Release publishing results for January 2006, IPI results are processed according to the new methodology, which was published in the Press Release of 10 March 2006.