Industry - September 2007

In September 2007, seasonally adjusted industrial production stood at the same level as in August 2007. Industrial production grew by 1.2%, year-on-year. Sales from industrial activity at constant prices rose by 3.3%, year-on-year. Industrial new orders increased by 9.8%, year-on-year.
Seasonally adjusted industrial production in September 2007 has not changed month-on-month. The trend grew by 0.2% (Table 5).

The year-on-year index of industrial production reached 101.2% in September, which was the lowest growth from March 2005 (or 103.0% working days adjusted, WDA). There was one working day less in September 2007 compared to September 2006. Seasonally adjusted index was 104.4%.
The growth of industrial production (Table 6) was most contributed to by 'manufacture of electrical and optical equipment' (+11.3%, contribution to the growth of industry in total 1.7 percentage points), 'manufacture of transport equipment' (+7.5%, contribution 1.5 p. p.) and 'manufacture of machinery and equipment' (+14.1%, contribution 1.0 p.p.).
A marked decrease was recorded for 'manufacture of coke, refined petroleum products' (-50.4%, contribution -2.0 p.p.), which came from a planned outage time of processing equipment. A drop was reported also for 'manufacture of basic metals and fabricated metal products' (-6.9%, contribution -0.9 p.p.) and 'manufacture of chemicals, chemical products and man-made fibres' (-8.9%, contribution -0.4 p.p.).

In September, an increase of production was recorded for the following main industrial groupings: ‘consumer durables’ (+12.0%) and ‘capital goods’ (+9.6%). A decrease was recorded for production of ‘energy’ (-16.9%), ‘consumer non-durables’ (-1.4%) and ‘intermediate goods’ (-1.2%).

Sales from industrial activity at constant prices (of the year 2000) rose by 3.3% (+4.4% at current prices), by 5.0% WDA, or by 6.4% SA, year-on-year. The increase of sales from industrial activity was most contributed to by ‘manufacture of electrical and optical equipment’ (+10.6%, contribution to the growth of industry in total 1.8 percentage points), ‘manufacture of transport equipment’ (+7.3%, contribution 1.6 p.p.) and ‘manufacture of machinery and equipment’ (+14.0%, contribution 1.2 p.p.). Sales from industrial activity decreased in 'manufacture of coke, refined petroleum products' (-50.0%, contribution -1.0 p.p.), for 'manufacture of basic metals and fabricated metal products' (-4.0%, contribution -0.4 p.p.) and 'manufacture of chemicals, chemical products and man-made fibres' (-8.5%, contribution -0.4 p.p.).

Direct export sales of industrial enterprises increased by 6.6% at constant prices (+6.8% at current prices), and their proportion in total sales of industrial enterprises stood at 51.1% (at current prices).

Sales from industrial activity of foreign-controlled enterprises were 6.9% up at constant prices (+7.7% at current prices), and their contribution to total sales made 61.4% (current prices). Direct export sales of industrial foreign-controlled enterprises increased by 8.2% at constant prices (+8.7% at current prices) and made up 76.2% of total sales of these enterprises (current prices).

The average number of persons employed*) in the industry went up by 1.4% in September 2007 (+15.6 thousand persons), year-on-year. Increases were registered in ‘manufacture of rubber and plastic products’ (+6.0%), ‘manufacture of machinery and equipment’ (+5.3%) and ‘manufacture of transport equipment’ (+4.7%). Employment decreased most in ‘manufacture of leather and leather products’ (-8.3%), ‘manufacture of textiles and textile products’ (-8.6%) and ‘mining and quarrying of energy producing materials’ (-6.0%).

The average monthly nominal wage in industry rose by 5.9% year-on-year and in September amounted to CZK 20,089. The average hourly wage increased by 9.4% and stood at CZK 149.5. Labour productivity in industry (sales per employee) rose by 1.2% and hourly labour productivity by 4.2%.

Industrial new orders in selected CZ-NACE activities concluded in August 2007 reached the value of CZK 157.7 billion (current prices), of which non-domestic industrial new orders made up CZK 103.3 billion. The y-o-y index of industrial new orders in total stood at 109.8%, the index of non-domestic industrial new orders was 116.3%. Non-domestic industrial new orders grew most in ‘manufacture of motor vehicles, trailers and semi-trailers’ (+23.3%, contribution to the growth of industry in total 7.3 percentage points), ‘manufacture of machinery and equipment‘ (+43.0%, contribution 6.1 p.p.) and manufacture of electrical machinery and apparatus (+17.7%, contribution 1.8 p.p.). Non-domestic industrial new orders dropped in ‘manufacture of radio, television and communication equipment and apparatus’ (-27.1%, contribution -1.9 percentage points), ‘manufacture of office machinery and computers’ (-20.4%, contribution -1.1 percentage points) and ‘manufacture of textiles and textile products’ (-5.4%, contribution -0.1 p.p.).
According to Eurostat News Release, the working days adjusted index of industrial production in the EU27 rose by 4.0% in August 2007 compared to August 2006. Among the EU27 member states for which the data were available, the highest increases were registered in Latvia (+13.7%), Slovenia (+10.0%) and Poland (+9.0%). A growth was recorded in Slovakia (+5.7%) and in Germany (+5.6%). Denmark reported a 1.3% drop.

Analysis - Development of industry in the third quarter of 2007: analysis

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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: 2 November 2007
End of data processing: 5 November 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.