Selected economic indicators - July
Selected economic indicators
Publication Date: 13. 09. 2009
Product Code: r-1101-09
In July, industrial production volume dropped by double/digit paces y-o-y again. Construction output went down after three months of growth. The fall of both exports and especially imports also continued, the trade balance ended in a surplus in all consecutive months. In July was less one working day on a year ago.
In August consumer prices were at the lower level than in July, the deceleration of the y-o-y inflation continued. The m-o-m registered unemployment rate went up in August, among others due to growing number of unemployed freshly graduated students and adolescents.
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JULY 2009
Industry 1
In July, the y-o-y volume of industrial production was by 18.2% lower (after working days adjustment by 16.1%), the improvement from June did not continue. The total drop was most affected by manufacture of motor vehicles, trailers and semi-trailers by –3.9 p.p (drop in the branch performance almost by one fourth), by next –3.1 p.p. manufacture of machinery and equipment (drop in the branch performance by 34,4%), then by –2.3 p.p. manufacture of metal constructions and metalworking products dropped by just one fourth and manufacture of basic metals, metallurgical products and foundry industry (by –1.6 p.p., drop by 32.6%). The seasonally adjusted industrial production decreased by 2.4% as against June.
In July, sales in industry at current prices went down by 19.7%, direct export sales almost identically (by 19.6%). Their share in total revenues of industrial enterprises made up 46.2%; in July 2008 it was less by 0.1 p.p.
The y-o-y average number of employees in enterprises with 50+ employees went down by almost 12.9%, in July their average monthly wage amounted to CZK 24 300 was up nominally by 2.4% and really by 2.1% on a year ago.
In July, the y-o-y value of new orders in selected industrial branches decreased by 21.2%, value of foreign orders dropped by 22.0%.
In January to July volume of industrial production went down by 18.5%, as against the same period of 2008 year. Sales in industry (at current prices) dropped by 18.8%, direct export sales by 19.6%. Number of employees in enterprises with 50+ employees went down by 10.2%, average monthly wage was up nominally by 1.5%, really went down by 0.1%.
Construction 1
In July, the y-o-y volume of construction output was after three months growth by 4.4% lower than a year ago, after working days adjustment decreased by 3.3%. The growth of structural engineering output by 12.1% was not enough for compensation of the drop in building construction by 11.4%. The m-o-m seasonally adjusted construction output went down by 0.7% in terms of real comparison.
An average number of employees in construction enterprises (with 50+ employees) went up by 0.4% y-o-y. Their average monthly wage reached CZK 29 189 and increased by 3.4% y-o-y, really by 3.1%.
In January to July volume of construction output was really lower by 4.2% on a year than during first seven months of 2008. In construction enterprises (with 50+ employees) an average number of employees increased by 0.6%, the average monthly wage increased nominally by 2.8% and really by 1.2%.
External trade
The y-o-y volume of both exports and imports decreased by 17.9% and by 21.3%, respectively (all in current prices), the drop in both is standing for ten subsequent months. As a result of a deeper drop in imports, the trade balance ended in a surplus amounted to CZK 12.3 bn, which was by CZK 5.7 bn higher on a year ago. The trade balance with EU member states was active by CZK 35.9 bn, (by CZK 4.4 bn lower on a year ago) and with non-EU countries passive by CZK 23.6 bn, last year in July the debit was higher by CZK 10.1 bn. Mineral fuels and raw materials were the main contributors to the trade balance surplus. Especially trade in mineral fuel and raw materials positively affected the trade balance. Only trade in machinery and transport equipment negatively affected the trade balance. After seasonal adjustment, exports went up by 0.5% and imports went down by 1.4%, m-o-m. Trends increased by 0.3% in exports and decreased in imports by 1.3%.
In January to July, both y-o-y exports and imports went down by 19.1% and 21.3%, respectively. The trade balance surplus amounted to CZK 89.4 bn was by CZK 18.7 bn higher than in the same period of 2008. The total trade balance surplus was record-breaking for first seven months of the year.
AUGUST 2009
Consumer prices
In total, consumer prices level decreased by 0.2% in August m-o-m , prices of goods dropped by 0.4%, prices of services went up by 0.2%. Prices of food and non-alcoholic beverages, which has been dropping the seventh subsequent month, had the decisive effect on this drop. On the other hand prices drop in clothing and footwear compensated prices growth in holidays and culture.
In terms of the y-o-y comparison, the increase in consumer prices decelerated to only 0.2% (i.e. less by 0.1 p.p. than in July 2009), this was the lowest y-o-y growth since September 2003. The tiny y-o-y development of prices level increase influenced most the prices development in individual groupings. Whilst prices in housing, water, energy and fuel (1.7 p.p., prices increase by 6.3%), alcoholic beverages and tobacco (0.5 p.p., prices increase by 5.7%) influenced the growth, 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 6.1%) and in public transport (effect –0.6 p.p., drop in prices by 5.7%). In total, prices of goods dropped by 1,5% and prices of services went up by 2.9%.
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 2.6% in August and was by 0.5 p.p. lower than in July 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 3.6%.
In August 2009, the average harmonized index of consumer prices did not change in the Czech Republic y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was – 0.2 %).
Unemployment
In August , the registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.1 p.p. m-o-m and amounted to 8.5% to the end of the month (last time was higher in March 2006). The unemployment rate of females surpassed 10%, in males reached 7.3%. As against end of August 2008 the registered unemployment rate was higher by sizeably 3.2 p.p. In August labour offices registered 493.8 thousand job applicants, which were by 8.4 thousand more, more than one half were unemployed freshly graduated students and adolescents. The y-o-y total number of unemployed people increased by 181.4 thousand, I.e. by more than 58%. The m-o-m share of freshly graduated students and adolescents in the total number of unemployed people increased by 0.9 p.p. to 5.3%, at the end of August 2008 was by 1.0 p.p. higher. Number of job opportunities has constantly been decreasing for almost the whole year, to the end of August reached 41.3 thousand m-o-m; it was lower in December 2003 last time. Number of applicants per one job opportunity at the end of August was 12 compared to 2.1 applicants in August 2008.
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.