Selected economic indicators - June

In June, industrial production volume has constantly been dropping by double/digit paces y-o-y again; however this drop has been milder. Construction output went up slightly. The fall of both exports and especially imports also continued, the trade balance ended in a surplus in all consecutive months. In June was more one working day on a year ago.
In July consumer prices were at the lower level than in June, the deceleration of the y-o-y inflation continued. The m-o-m registered unemployment rate went up in July.
JUNE 2009

Industry ¹

In June, the y-o-y volume of industrial production was by 12.2% lower (after working days adjustment by 14.3%), the result was approximately by 10 p.p. better than in previous two months. The total drop was most contributed to by manufacture of metal constructions and metalworking products by –2.5 p.p. (drop in the branch performance by 26.6%), identically by next –1.7 p.p. manufacture of machinery and equipment (drop in the branch by 16.5%) and manufacture of basic metals, metallurgical products, servicing (drop in the branch by one third). Manufacture of motor vehicles, trailers and semi-trailers decreased by next –1.3 p.p. and dropped by 8.1%. The seasonally adjusted industrial production increased by 2.9% as against May.

In June, sales in industry at current prices went down by 14.2%, direct export sales by 11.1%. Their share in total revenues of industrial enterprises made up 49.6%; in June 2008 it was 47.9%.

The y-o-y average number of employees in enterprises with 50+ employees went down by almost 13.1%, in June their average monthly wage amounted to CZK 23 621 was up nominally by 2.4% and really by 1.2% on a year ago.

In June, the y-o-y value of new orders in selected industrial branches decreased by 13.0%, value of foreign orders dropped by 8.3%.

In H1 volume of industrial production went down by 18.9%, as against the same period of 2008 year; almost identically in Q1 by 19.0% and in Q2 by 18.8%. Sales in industry (at current prices) dropped by 18.7%, direct export sales by 19.5%. Number of employees in enterprises with 50+ employees went down by 9.9%, average monthly wage was up nominally by 1.6%, really went down by 0.2%.

Construction ¹

In June, the y-o-y volume of construction output was at the same level on a year ago (index in constant prices 100.1%), after working days adjustment decreased by 0.9%. The growth of structural engineering output by 21.1% was enough for compensation of the drop in building construction by 8.9%. In June the m-o-m seasonally adjusted construction output went up by 1.0% in terms of real comparison.

An average number of employees in construction enterprises (with 50+ employees) went up by 1.1% y-o-y. Their average monthly wage reached CZK 26 757 and increased by 3.5% y-o-y, really by 2.3%.

In H1 volume of construction output was really lower by 4.8% on a year; in Q1 dropped by 11.4%, in Q2 remained at the level of Q2 2008. In construction enterprises (with 50+ employees) an average number of employees increased by 0.5%, the average monthly wage increased nominally by 3.2% and really by 1.4%.

External trade

The y-o-y volume of both exports and imports decreased by 15.1% and by 19.3%, respectively (all in current prices), the drop in both is standing for nine subsequent months. As a result of a deeper drop in imports, the trade balance ended in a surplus amounted to CZK 20.4 bn, which was by CZK 6.5 bn higher on a year ago, and after the March surplus was the second highest one during the history of the Czech Republic. The trade balance with EU member states was active by CZK 41.8 bn, (by CZK 1.0 bn lower on a year ago) and with non-EU countries passive by CZK 21.3 bn, last year in June the debit was higher by CZK 7.5 bn. Mineral fuels and raw materials were the main contributors to the trade balance surplus. Only trade in machinery; transport equipment; industrial consumer goods negatively affected the trade balance. After seasonal adjustment, exports went up by 1.6% and imports went down by 1.0%, m-o-m. Trends decreased by 0.4% in exports and in imports by 1.1%.

In H1, both y-o-y exports and imports went down by 19.2% and 21.5%, respectively. Paces of growth were by 25 p.p. lower on a year ago. The trade balance surplus amounted to CZK 79.4 bn was by CZK 15.3 bn higher than in H1 2008. In Q1, exports decreased by 18.8% and imports by 20.0%, in Q2 exports by 19.7% and imports by 22.9%. The trade balance surplus reached CZK 35.3 bn in Q1, in Q2 CZK 44.1 bn.


JULY 2009

Consumer prices

In total, consumer prices level decreased by 0.4% in July m-o-m after the three-month stagnation; prices of goods dropped by 1.2%, prices of services went up by 0.9%. Prices of food and non-alcoholic beverages, clothing and footwear, and post and telecommunication services had the decisive effect on this drop. On the other hand prices only in holidays and culture increased more sizeably.

In terms of the y-o-y comparison, the increase in consumer prices decelerated to 0.3% (i.e. by 0.9 p.p. less than in June 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 (1.8 p.p., prices increase by 6.5%), alcoholic beverages and tobacco (0.7 p.p., prices increase by 7.6%) influenced the growth, a downward effect on the consumer prices level (by 1.1 p.p.) came from a price development in food and non-alcoholic beverages (drop in prices by 6.5%) and in public transport (effect –0.7 p.p., drop in prices by 6.8%). In total, prices of goods dropped by 1,5% and prices of services went up by 3.2%.

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 3.1% in July and was by 0.6 p.p. lower than in June 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 4.2%.

In July 2009, the y-o-y decrease of average harmonized index of consumer prices reached –0.1% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was -0.6%).

Unemployment

In July , the registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.4 p.p. m-o-m and amounted to 8.4% to the end of the month (last time was higher in March 2006). The unemployment rate of females approached 10%, in males reached 7.2%. As against end of July 2008 the registered unemployment rate was higher by sizeably 3.1 p.p. In July labour offices registered 485.3 thousand job applicants, which were by 21.8 thousand more, and by 175.3 thousand more y-o-y (by 56.5%). The m-o-m number of unemployed freshly graduated students and adolescents increased slower than in July last year, its share in the total number of unemployed people as against last month did not change and remained at 4.4%, at the end of July 2008 was by 1.1 p.p. higher. Number of job opportunities has constantly been decreasing for almost whole year, to the end of July reached 41.8 thousand m-o-m; it was lower in January 2004 last time. Number of applicants per one job opportunity at the end of July was 11.6 compared to 2.1 applicants in July 2008.

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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