Quarterly Sector Accounts - 1st quarter of 2015

In the Q1 2015, profitability of enterprises increased to 49.7%, which is by 1.3 p.p. more, year-on-year.  Real household consumption per capita increased by 3.5%, y-o-y, and thus overtook the growth of real income.

Quarterly sector accounts, an integral part of the national accounts system, are a very rich data source that offers a wide range of information on individual sectors of the national economy and relationships among them. The CZSO has compiled this new news release in reaction to long-term requests of users and it will bring as a standard the most updated information on selected indicators of non-financial corporations and households.

Non-financial corporations: profitability is growing

Profitability of enterprises¹ increased in the first quarter of 2015 to 49.7%, which is by 1.3 p.p. more, y-o-y. Thus it became closer to the values before the crisis. Investment rate² increased by 1.7 p.p., y-o-y, and reached 25.5%.

Households: real income increased by 2.7%

Household real income per capita³ increased by 2.7%, year-on-year. Household real consumption per capita⁴ grew even faster, by 3.5%.

Average monthly income of households per capita in nominal terms⁵ was CZK 20 500; of that, CZK 3 579 were individual services and goods⁶ provided by the general government and non-profit institutions serving households.

Average monthly income from employment⁷ reached CZK 25 821 and it increased in real terms by 2%, y-o-y.

Average monthly consumption of households per capita in nominal terms⁸ reached CZK 19 159. Faster growth of household expenditure was contributed to especially by durables, which are mainly imported. Households thus partially realized the consumption they were postponing during the previous years.

Resulting from that is lower saving rate⁹ than a year before, namely 9.4%. On the other hand, investment rate in the household sector increased to 7.5%, year-on-year.

1.   Profitability of non-financial corporations is defined as gross operating surplus divided by gross value added (B.2g/B.1g). The indicator refers to profitability of production factors from the production process.

2.   The gross investment rate of non-financial corporations is defined as gross fixed capital formation divided by gross value added (P.51g/B.1g). This ratio relates the investment of non-financial businesses in fixed assets (buildings, machinery etc.) to the value added created during the production process.

3.   Household real income per capita is defined as the adjusted gross disposable income of households, in nominal terms, divided by the mid-year population and by the deflator (price index) of household final consumption expenditure.

4.   Household real expenditure per capita is defined as real household final expenditure, in nominal terms, divided by the mid-year population and by the deflator (price index) of household final consumption expenditure.

5.   Average monthly income of households per capita, in nominal terms, is defined as the adjusted disposable income of households divided by the mid-year population.

6.   Individual services and goods provided are represented by social transfers in kind (D.63) of the general government and non-profit institutions serving households (NPISHs). They refer to the value of goods and services provided mainly in the form of health and social care, education, housing. They include especially benefits in kind related to health insurance (payments for health aids,  medical and dental treatment, medical operations, and the like) paid by health insurance companies to providers of such goods and services. They also include benefits in kind provided by municipalities and the value of goods and services amounting to expenditure of the general government and non-profit institutions serving households on individual consumption. Social benefits in kind are divided according to whether the goods and services were produced as non-market output produced by the government units and NPISHs or purchased by the units on the market (including reimbursements of approved expenditure of households for some specific goods or services). The same value is imputed in the sector of households on the income side (adjusted disposable income) as well as on the expenditure side (real final consumption of households).

7.   Average monthly income from employment is defined as wages and salaries for the national economy (D.11) in average per month divided by the number of employees (full-time equivalent). The wages and salaries indicator includes all income from employment, namely in cash as well as in kind (employee benefits) regardless of whether they have been officially reported or not. The number of employees (full-time equivalent) includes all forms of employment, formal and informal. Various types of agreements are also included. The calculation does not include hours worked by working owners of enterprises, who are according to national accounts definitions included in the category of employees.

8.   Average monthly consumption of households per capita, in nominal terms, is defined as the real household final consumption divided by the mid-year population.  

9.   Household saving rate is defined as the gross savings divided by the gross disposable income with inclusion of adjustment for net share of households in reserves of pension funds. (B.8g/(B.6g+D.8)). Gross savings are part of gross disposable income, which has not been consumed in the form of final consumption expenditure.

Data are not seasonally adjusted and therefore cannot be compared quarter-on-quarter.

The news release of Eurostat on quarterly sector accounts is published later. The latest published information for the fourth quarter of 2014 is available at:

http://ec.europa.eu/eurostat/web/products-press-releases/-/2-14042015-BP http://ec.europa.eu/eurostat/web/products-press-releases/-/2-14042015-CP

http://ec.europa.eu/eurostat/web/products-press-releases/-/2-30042015-CP

Quarterly sector accounts data are published on the CZSO website in the tables of S1 Transactions in Products and Distributive Transactions by Sector and S2 Quarterly Non-financial Sector Accounts (Current and Capital Accounts):  https://csu.gov.cz/produkty/hdp_ts

As it was announced already in May 2015, the news release on quarterly national accounts in the term of 90 days after the end of the reference quarter will not contain information on quarterly GDP estimates.