Industry - September 2008

In September 2008, seasonally adjusted industrial production increased by 0.9%, compared to August 2008. Industrial production increased by 9.6% (by 3,4% WDA), year-on-year. Sales from industrial activity at constant prices increased by 8.9%, year-on-year. The value of industrial new orders decreased by 2.7%, year-on-year.
Seasonally adjusted industrial production in September 2008 was up by 0.9%, month-on-month. The trend grew by 0.2% (Table 6).

The year-on-year index of industrial production reached 109.6% in September 2008 (103.4%, working days adjusted). There were three working days more in September 2008 compared to September 2007. Seasonally adjusted index (including WDA) was 104.1%.
The growth of industrial production (Table 5) was positively affected by 'manufacture of electrical and optical equipment' (+17.5%, contribution to the growth of industry in total 2.9 percentage points), 'manufacture of coke, refined petroleum products' (+105.4%, contribution 2.0 p.p.) and 'manufacture of transport equipment' (+7.8%, contribution 1.7 p.p.). Results in 'manufacture of coke, refined petroleum products' were affected by extremely low comparative base in previous year (standstill of processing equipment).
A decrease of industrial production was recorded in 'electricity, gas and water supply' (-4.9%, contribution to the drop of industry in total -0.3 percentage points), 'manufacture of wood and wood products' (-4.5%, contribution -0.1 p.p.) and 'manufacture of textiles and textile products' (-1.9%, contribution -0.05 p.p.).

In September 2008, production increased in main industrial groupings: 'consumer durables' (+21.6%), 'energy' (+18.9%), 'intermediate goods' (+10.0%) and 'capital goods' (+8.3%). 'Consumer non-durables' remained on the same level as in September 2007.

Revenues from industrial activity at constant prices (of the year 2000) rose by 8.9%, y-o-y (+7.8% at current prices), WDA they increased by 2.9%, SA by 3.5%. The increase of revenues from industrial activity was most contributed to by ‘manufacture of electrical and optical equipment’ (+16.1%, contribution to the growth of industry in total 2.8 percentage points), 'manufacture of transport equipment' (+7.8%, contribution 1.7 p.p.) and 'manufacture of coke, refined petroleum products' (+88.3%, contribution 1.3 p.p.). The biggest drop of sales from industrial activity was contributed to by 'mining and quarrying of energy producing materials' (-10.6%, contribution to the drop of industry in total -0.2 percentage points), 'manufacture of wood and wood products' (-4.5%, contribution -0.1 p.p.) and 'manufacture of food products; beverages and tobacco' (-0.7%, contribution -0.1 p.p.).

Direct export revenues of industrial enterprises were 11.0% up at constant prices, (+2.5% at current prices). Their contribution to total revenues of industrial enterprises stood at 48.1% (current prices).

Revenues from industrial activity of foreign-controlled enterprises increased by 8.1% at constant prices (+4.6% at current prices). Their contribution to total revenues (at current prices) stood at 59.2%. Direct export sales of industrial foreign-controlled enterprises increased by 10.3% at constant prices (+1.9% at current prices) and made up 75.8% of total revenues of these enterprises (at current prices).
The average number of persons employed in industry decreased in September 2008 by 10.1 thousand persons, y-o-y (i.e. -0.9%). Employment decreased most in 'manufacture of textiles and textile products' (-13.3%), 'manufacture of leather and leather products' (-8.5%) and in 'electricity, gas and water supply' (-7.3%). Increases in average number of persons employed were registered in 'manufacture of transport equipment' (+3.9%), 'manufacture of rubber and plastic products' (+3.7%) and 'manufacture of electrical and optical equipment' (+1.9%).

The average monthly nominal wage in September 2008 amounted to CZK 21,841 and rose by 8.6%, y-o-y. The average hourly wage decreased by 1.2% and stood at CZK 147.7. Labour productivity in industry increased by 10.2% and hourly labour productivity was by 0.5% higher. These results were affected by higher number of working days (+3 days), which is attested to the increased number of hours worked (+9.0%).

Industrial new orders in selected CZ-NACE activities concluded in September 2008 reached the value of CZK 157.3 billion at current prices, of which non-domestic industrial new orders made up CZK 97.1 billion. The y-o-y index of industrial new orders in total stood at 97.3%, the index of non-domestic industrial new orders was 92.2%. Non-domestic industrial new orders dropped most in ‘manufacture of motor vehicles, trailers and semi-trailers' (-16.2%, contribution -5.4 p.p.), 'manufacture of machinery and equipments' (-21.8%, contribution -3.9 p.p.) and 'manufacture of office machinery and computers' (-28.8%, contribution -1.1 p.p.). Non-domestic industrial new orders rose most in 'manufacture of radio, television and communication equipment and apparatus' (+70.3%, contribution +3.2 p.p.), in 'manufacture of basic metals and fabricated metal products' (+15.8%, contribution +1.2 p.p.) and 'manufacture of chemicals and chemical products' (+8.4%, contribution +0.5 p.p.).
According to Eurostat News Release, working day adjusted in the EU27 by 1.1% in August 2008 compared to August 2007. Among the EU27 member states for which the data were available, the highest increases were registered in Ireland (+4.2%), Germany (+1.8%) and Czech Republic (+1.7%). A growth was reported in Slovakia (+1.0%). The biggest decrease was recorded in Latvia (-11.1%).

Analysis - Development of industry in the third quarter of 2008

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Note
Contact: Radek Matějka , tel: (+420) 274052894, E-mail: radek.matejka@czso,.cz
Data source: CZSO direct survey in enterprises with 20+ employees
End of data collection: 4 November 2008
End of data processing: 7 November 2008
Related publication: 8001-08 Industry of the Czech Republic
( http://www.czso.cz/csu/2008edicniplan.nsf/p/8008-8 )