Selected economic indicators - December

In December, both, industrial production volume and construction output increased y-o-y, in industry after fourteen-months-drop. After the November stagnation volume of exports were higher in December, as against last year, volume of imports continued dropping. The trade balance ended in a surplus in all months of this year, it was for the first time during the history of the Czech Republic in December. In December was one day more on a year ago.
In January, the y-o-y consumer prices level increased also m-o-m. The registered unemployment rate and also number of job applicants went up to the record-breaking level.
DECEMBER 2009

Industry ¹

In December, the y-o-y volume of industrial production was by 1.8% higher (after working days adjustment dropped by 0.6%). The total increase was most affected by 3.6 p.p. manufacture of motor vehicles, trailers and semi-trailers (growth by 30.2%), by next 1.1 p.p. manufacture of chemicals and chemical products (growth almost by one half) and 0.8 p.p. manufacture of rubber and plastic products (growth by 15.5%). A downward effect on the growth (-2.3 p.p.) came most from manufacture of machinery and equipment, which dropped by 31.4%, and then from manufacture of other non-metal mineral products and manufacture of other means of transport. The seasonally adjusted volume of industrial production decreased by 0.4% as against November.

Sales in industry at current prices went down by 0.8% y-o-y, direct export sales went up by 3.6%. Their share in total revenues of industrial enterprises made up 42.1%; in December 2008 it was less by 1.8 p.p.

The y-o-y average number of employees in enterprises with 50+ employees went down by 12.9%. Their average monthly wage amounted to CZK 27 012 was up nominally and really by 10.7% and 9.6%, respectively.

The y-o-y value of new orders in selected industrial branches increased by 12.4%, value of foreign orders went up by 17.0%. The annual gain monitored was higher on a month ago.

In 2009 as against 2008 volume of industrial production went down by sizeably 13.4%, the interannual drop in the course of individual quarters softened gradually from 19.1% in Q1 to 18.5% in Q2, then 12.8% in Q3 and 2.1% in Q4. Sales in industry (at current prices) as well as direct export sales dropped identically by 15.1%. Number of employees in enterprises with 50+ employees went down by 11.3%, an average monthly wage was up nominally by 3.6% to CZK 23 931, really went up by 2.6%.

Construction ¹

In December, the y-o-y volume of construction output went up by 3.5% y-o-y, at constant prices, after working days adjustment went up by 2.2%. Both, building construction and structural engineering went up (by 0.9% and 4.6%, respectively), identically like in previous month. The m-o-m seasonally adjusted construction output went down by 1.4% in terms of real comparison.

An average number of employees in construction enterprises (with 50+ employees) went down by 1.7% y-o-y. Their average monthly wage reached CZK 38 534 and increased by 29.0% y-o-y, in terms of real comparison its growth was 27.7%. This high growth in wages influenced paid extraordinary annual bonuses; thirteenth wages and special target bonuses for fulfilled key work assignments and completed economic results.

In 2009 volume of construction output was really lower by 1.0% than a year ago. After the marked drop in Q1 by 11.4% construction output fluctuated above the last-year-level, gradually by 1.0%; 0.1% and 2.7%. In construction enterprises (with 50+ employees) an average number of employees reduced by 0.2%, the average monthly wage increased nominally by 5.5% to CZK 28 091 and really by 4.5 %.

External trade

In December, after the y-o-y stagnation in November volume of exports increased for the first time in 2009 (by 4.8%), volume of imports continued dropping, in December only by 2.6% (all at current prices). The growth in exports influenced among others lower December 2008 comparative base; drop in imports has been remaining for fifteenth month. The trade balance ended in a surplus amounted to CZK 2.8 bn, that was by CZK 11.9 bn higher y-o-y, which was the first positive balance since the independent Czech Republic was established. The trade balance with EU member states was active by CZK 33.0 bn, (by CZK 6.8 bn higher on a year ago) and with non-EU countries passive by CZK 30.2 bn, in December 2008 the debit was worse by CZK 5.1 bn. All groupings of goods had positive effect on the trade balance; except the tiny worsening of trade balance in food and living animals, drinks and tobacco, and chemicals and related products. The trade balance improved especially in mineral fuel, lubricants and related materials, machinery and transport equipment. After seasonal adjustment, both m-o-m exports and imports went down by 0.9% and by 0.2%, respectively. Trends in exports and in imports went up by 0.3% and 0.4%, respectively.

In 2009 the y-o-y exports and imports dropped by sizeable 14.1% and 18.1% respectively. In 2002 was monitored the drop in both, exports and imports, however much little. The surplus in exports in comparison to imports by CZK 153.2 bn was record-breaking; by CZK 85.9 bn higher as against 2008. In the course of individual quarters the surplus went up from CZK 32.3 bn in Q1 to record-breaking CZK 46.7 bn in Q2 and then it went down to CZK 39.3 bn in Q3 and CZK 34.8 bn in Q4. Since Q2 the balance improved as against last year and the positive difference went up permanently.

According to preliminary recalculations in external trade results into prices of previous year, in 2009 both, in terms of real comparison the y-o-y exports and imports decreased by 14.2% % and 15.8%, respectively. The surplus of CZK 96 bn was by CZK 29 higher on a year ago.


JANUARY 2010

Consumer prices

In total, consumer prices level increased by 1.2% in January m-o-m , especially as a result of a rise in basic VAT as well as reduced VAT and in excise tax on fuel and alcoholic beverages. Prices of goods went up by 0.8%, prices of services by 1.8%. The price level increase influenced especially prices in housing, water, energy and fuel by 1.3%, food and non-alcoholic drinks by 1.9%, alcoholic drinks and tobacco by 2.6% and public transport by 1.4%. Only prices in clothing and footwear reduced by 3.4%. In terms of the y-o-y comparison, consumer prices growth decelerated to 0.7% (i.e. by 0.3 p.p. less than in December 2009). The price level increase influenced especially prices of public transport (effect by 0.8 p.p., prices increase by 6.7%), prices in housing, water, energy and fuel identically by 0.3 p.p. (prices increase by 1.0%), and alcoholic drinks and tobacco (prices increase by 3.9%). A downward effect on the consumer prices level came from a price development in prices of food and non-alcoholic beverages (effect –0.6 p.p., price reduction by 3.2%). In total, prices of goods dropped by 0,5% and prices of services went up by 2.3%.

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 0.9% in January and was by 0.1 p.p. lower than in December 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 1.3%.

In January, the average harmonized index of consumer prices increased in the Czech Republic by 0.4% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.0%).

Unemployment

The registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.6 p.p. m-o-m, and approached the ten-percent-limit (9.8%). The unemployment rate in females went up by 0.3 p.p. to 10.6%, in males increased by 0.9 p.p. to 9.3%. As against end of January 2009 the registered unemployment rate was higher by sizeably 3.0 p.p., however, that difference reduced after four months. Labour offices registered record-breaking 574,2 thousand job applicants; previous record 570,8 thousand job applicants was registered in February 2004. The m-o-m gain amounted to 35.1 thousand persons was higher by 176.2 thousand, i.e. by 44.3% annually. The m-o-m share of freshly graduated students and adolescents in the total number of unemployed people amounted to 6.1% at the end of January, as against previous month decreased by 0.5 p.p., as against January 2009 by 0.2 p.p. After the sixteen-months-drop free number of job opportunities increased a little, at the end of January amounted to 31,6 thousand. Number of applicants per one job opportunity was 18.2 compared to 5.8 applicants at the end of January 2009.

This press release was not edited for language.
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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.

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