Selected economic indicators - August
Selected economic indicators
Publication Date: 14. 10. 2009
Product Code: r-1101-09
In August, industrial production volume dropped y-o-y again, while construction output went up moderately. Both exports and especially imports decreased, the trade balance ended in a surplus in all months of this year.
In September consumer prices were at the same level than in last year, as against August reduced. The m-o-m registered unemployment rate went up in September, due to seasonal gain of freshly graduated students.
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AUGUST 2009
Industry 1
In August, the y-o-y volume of industrial production was by 8.4% lower, which was by 10 p.p. better results than in last month. August year-on-year changes in industry were affected by low comparative base of the previous year. The total drop was most affected by –2.0 p.p. manufacture of metal constructions and metalworking products, by next –1.9 p.p. manufacture of machinery and equipment and by –1.2 p.p. manufacture of electrical appliances. The performance of each branch decreased approximately by one fifth. Industrial production went up especially in manufacture of motor vehicles, trailers and semi-trailers (contribution + 2.2 p.p., growth by 17.7%). The seasonally adjusted industrial production increased by 4.0% as against July.
In August, sales in industry at current prices went down by 12.7%, direct export sales by 8.7%. Their share in total revenues of industrial enterprises made up 46.9%; in August 2008 it was less by 2.1 p.p.
The y-o-y average number of employees in enterprises with 50+ employees went down by almost 14.0% and the drop is getting down constantly. Their average monthly wage amounted to CZK 22 899 was up nominally by 5.4% and really by 5.2%.
The y-o-y value of new orders in selected industrial branches decreased by 13.6%, value of foreign orders dropped by 10.0%.
In January to August volume of industrial production went down by 17.4%, as against the same period of 2008 year. Sales in industry (at current prices) dropped by 18.1%, direct export sales by 18.5%. The y-o-y value of new orders decreased by 21,9%, value of foreign orders dropped by 20,5%. Number of employees in enterprises with 50+ employees went down by 10.6%, average monthly wage was up nominally by 2.0%, really went up by 0.6%.
Construction 1
In August, the y-o-y volume of construction output came to the growth like in Q2, disrupted in July, by 0.6%, at constant prices. The growth of structural engineering output by 14.0% was enough to compensate the drop in building construction by 5.1%. The m-o-m seasonally adjusted construction output went up by 1.5% in terms of real comparison.
An average number of employees in construction enterprises (with 50+ employees) went up by 0.3% y-o-y. Their average monthly wage reached CZK 25 899 and increased by 4.2% y-o-y, really by 4.0%.
In January to August volume of construction output was really lower by 3.5% on a year than during first eight months of 2008. In construction enterprises (with 50+ employees) an average number of employees increased by 0.5%, the average monthly wage increased nominally by 3.0% and really by 1.6%.
External trade
The y-o-y volume of both exports and imports decreased by 8.8% and by 14.2%, respectively (all in current prices), the drop in both is standing for eleven subsequent months, and in total the turnover was approximately at the level of August 2005. As a result of a deeper drop in imports, the trade balance ended in a surplus amounted to CZK 10.6 bn, which was by CZK 9.1 bn higher on a year ago. The trade balance with EU member states was active by CZK 33.9 bn, (by CZK 1.4 bn lower on a year ago) and with non-EU countries passive by CZK 23.3 bn, last year in August the debit was higher by CZK 10.5 bn. Trade in mineral fuel and (impact of drop in prices on deficit decrease) and in machinery and transport equipment (impact of “scrapping” in neighbouring countries on the surplus growth). After seasonal adjustment, exports went up by 4.4% and imports by 4.2%, m-o-m. Trends increased by 1.7% in exports and in imports by 0.7%.
In January to August both y-o-y exports and imports went down by 18.0% and 20.5%, respectively. The trade balance surplus amounted to CZK 100.0 bn was by CZK 27.8 bn higher than in the same period of 2008. The total trade balance surplus was record-breaking for first eight months of the year.
SEPTEMBER 2009
Consumer prices
In total, consumer prices level decreased by 0.4% in September m-o-m , prices of goods dropped by 0.1%, prices of services by 0.8%. Prices in recreation and culture (among others reduction of prices of package holidays by 15.1%) and public transport (price reduction of automotive fuel by 1.6%) had the decisive effect on this drop. Prices of food and non-alcoholic beverages have been dropping for eight consequent months. On the other hand prices of clothing and footwear increased. In terms of the y-o-y comparison, consumer prices level did not change; such a result was reached in September 2003. The zero growth of the price level influenced the different development in individual groupings. Whilst prices in housing, water, energy and fuel (1.7 p.p., prices increase by 6.2%) and alcoholic beverages and tobacco (0.3 p.p., prices increase by 3.4%), a downward effect on the consumer prices level (by –1.0 p.p.) came from a price development in food and non-alcoholic beverages (drop in prices by 5.8%) and in public transport (effect – 0.6 p.p., drop in prices by 5.6%). In total, prices of goods dropped by 1,6% and prices of services went up by 2.8%.
In Q1 consumer prices went up by 2.1% y-o-y; in Q2 by 1.4% and in Q3 by only 0.1%. The growth of administratively regulated prices was 10.7% in Q1 and during next quarters stepwise by 9.4% and 7.2%, respectively. Market prices in Q1 were at the level of the same period of 2008, then were lower than last year, in Q2 by 0.6%, in Q3 by 1.7%.
Inflation rate, i. e. an increase in the average consumer price index for last 12 months related to the average CPI for the preceding 12 months reached 2.1% in September and was by 0.5 p.p. lower than in August 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 2.9%.
In September 2009, the average harmonized index of consumer prices decreased in the Czech Republic by 0.4% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was – 0.3%).
Unemployment
In September , the registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.1 p.p. m-o-m and amounted to 8.6% to the end of the month. The unemployment rate of females did not change and remained at 10.1%, in males reached 7.4%. As against end of September 2008 the registered unemployment rate was higher by sizeably 3.3 p.p. Labour offices registered more than one half million job applicants (last time in March 2006). This high gain (by 7.1 thousand people) caused a high number of unemployed freshly graduated students and adolescents (11.9 thousand). The y-o-y total number of unemployed people increased by 186.3 thousand, I.e. by more than 59%. The m-o-m share of freshly graduated students and adolescents in the total number of unemployed people increased by 2.3 p.p. to 7.6%, at the end of September 2008 was by 1.6 p.p. higher. Number of job opportunities has constantly been decreasing for 13 months, to the end of September reached 38.8 thousand m-o-m; however it was lower in December 2003 last time. Number of applicants per one job opportunity at the end of September was 12.9 compared to 2.2 applicants in September 2008.
In Q1 to Q3 an average registered unemployment rate amounted to 7.7%; in Q1 it was 7.0%, in Q2 7.9% and in Q3 8.4%.
This press release was not edited for language.
1 Starting from January 2009 the industry and construction figures are processed and published in compliance with the new CZ-NACE classification, incl. recalculation of the time series of the basic indices covering the period 2000–2008.