Selected economic indicators - May

In May, industrial production volume dropped by more than one fifth y-o-y, construction output went down only slightly. The fall of both exports and imports also continued, the trade balance ended in a surplus for the three consecutive months. In May was less one working day on a year ago.

In June consumer prices level remained at the level of previous two months, the deceleration of the y-o-y inflation continued. The m-o-m registered unemployment rate went up in June.




MAY 2009

Industry ¹
In May, the y-o-y volume of industrial production was by 22.0% lower (after working days adjustment by 20.1%), the decline was almost the same like in April. The total drop was most contributed to by manufacture of machinery and equipment by –3.2 p.p. (drop in the branch by 32.7%), identically by next –2.7 p.p. manufacture of metal constructions and metalworking products (drop in branch performance by 30.9%) and manufacture of motor vehicles, trailers and semi-trailers (drop by 17.3%). Manufacture of metals, metalworking and servicing where the drop by 42.5% was the highest one across all the branches contributed to by next –2.1 p.p. The seasonally adjusted industrial production decreased by 2.1% as against April.

In May, sales in industry at current prices went down by 23.4%, direct export sales by 23.9%. Their share in total revenues of industrial enterprises made up 47.4%; in May 2008 it was 47.7%.

The y-o-y average number of employees in enterprises with 50+ employees went down by almost 12.5%, in May their average monthly wage amounted to CZK 23 612 was up nominally by 1.9% and really by 0.6% on a year ago.

In May, the y-o-y value of new orders in selected industrial branches decreased by 27.8%, value of foreign orders dropped by 27.0%.

In January to May volume of industrial production went down by 20.3%, as against the same period of 2008 year. Sales in industry (at current prices) dropped by 19.6%, direct export sales by 21.2%. Number of employees in enterprises with 50+ employees went down by 9.2%, average monthly wage was up nominally by 1.4%, really went down by 0.5%.


Construction ¹

In May, the y-o-y volume of construction output was by 2.1% lower (at constant prices), after working days adjustment decreased by 1.2%. The growth of structural engineering output by 16.7% was not enough for compensation of the drop in building construction by 9.5%. In May the m-o-m seasonally adjusted construction output went down by 4.1% in terms of real comparison.

An average number of employees in construction enterprises (with 50+ employees) went up by 0.8% y-o-y. Their average monthly wage reached CZK 26 276 and decreased by 1.4% y-o-y, really by 2.7%.

In January to May volume of construction output was really lower by 6.1% y-o-y. In construction enterprises (with 50+ employees) an average number of employees increased by 0.4%, the average monthly wage increased nominally by 3.1% and really by 1.2%.


External trade

In May, the y-o-y volume of both exports and imports deepened by 21.2% and by 23.2%, respectively (all in current prices), volume of imports was the lowest one since January 2006, value of exports since January 2009. As a result of a deeper drop in imports, the trade balance ended in a surplus amounted to CZK 11.7 bn, which was by CZK 2.0 bn higher on a year ago. The trade balance with EU member states was active by CZK 36.2 bn (by CZK 9.8 bn lower on a year ago) and with non-EU countries passive by CZK 24.5 bn, last year the debit was higher by CZK 11.8 bn. Mineral fuels, raw materials, semi-finished goods and materials were the main contributors to the trade balance surplus. Trade in machinery; transport equipment; industrial consumer goods negatively affected the trade balance. After seasonal adjustment, exports went down by 2.9% and imports by 1.0%, m-o-m. Trends decreased by 1.3% in exports and in imports by 1.1%.

In January to May, both exports and imports went down by 20.1% and 21.9%, respectively. The trade balance surplus amounted to CZK 59.0 bn was by CZK 8.9 bn higher y-o-y, and was the highest one during first five months in the history of the independent Czech Republic.




JUNE 2009


Consumer prices

In total, consumer prices level remained at the same level for three months; in June, m-o-m prices of goods did not change, prices of services went up by 0.1%. On one hand, prices in public transport (automotive fuel) increased but on the other hand prices in food and non-alcoholic beverages (prices of bakery products, flour, fruit and vegetables grown for fruit) decreased. In terms of the y-o-y comparison, the increase in consumer prices decelerated to 1.2% (i.e. by 0.1 p.p. less than in May 2009), this was the lowest growth since December 2003. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.2 p.p., prices growth by 8.2%), alcoholic drinks and tobacco (0.8 p.p., prices growth by 9.1%). A downward effect on the consumer price level (-0.8 p.p.) came from a price development in public transport (drop in prices by 7.3%), food and non-alcoholic beverages (drop in prices by 4.6%). In total, prices of goods dropped by 0.2% and prices of services went up by 3.4%.

In H1 the y-o-y -consumer prices increased in average by 1.8%, in Q1 by 2.1%; in Q2 by 1.4%.

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 3.7% in June and was by 0.4 p.p. lower than in May 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 4.9%.

In June 2009, the y-o-y increase of average harmonized index of consumer prices reached 0.8% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was -0.1%).


Unemployment

In June , the registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.1 p.p. m-o-m and amounted to 8.0% to the end of the month (last time was higher in April 2006). The unemployment rate of females increased by 0.2 p.p. to 9.3%, in males did not change and remained at 7.0%. As against end of June 2008 (the last-year-minimum) the registered unemployment rate was higher by sizeably 3.0 p.p. In June labour offices registered 463.6 thousand job applicants, which were by 6.0 thousand more, and by 165.7 thousand more y-o-y (by 55.6%). The m-o-m number of unemployed freshly graduated students and adolescents decreased, its share in the total number of unemployed people as against last month dropped by 0.8 p.p. to 4.4%, at the end of June 2008 was by 0.7 p.p. higher. Number of job opportunities decreased to 43.4 thousand, m-o-m; it was lower in April 2004 last time. Number of applicants per one job opportunity at the end of June was 10.7 compared to 2.0 applicants in June 2008, which was the record-breaking minimum.

In H1 an average registered unemployment rate amounted to 7.4%, in Q1 7.0% and in Q2 7.9%.


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.