Selected economic indicators - November

In November, industrial production volume dropped y-o-y for the fourteenth time in the time series. Growth of construction output was the highest one of all months of 2009 year. In November, after the thirteen-month-drop volume of exports was at the last year level, volume of imports continued dropping. The trade balance ended in a surplus in all months of this year. In November was one day more on a year ago.
In December, and also in the course of 2009 year consumer prices level was identically by 1,0% higher y-o-y. As against November, the registered unemployment rate and also number of job applicants went up to the highest level in 2009 year.
NOVEMBER 2009

Industry ¹

In November, the y-o-y volume of industrial production was by tiny 0.1% lower (after working days adjustment by 2.5%). The total drop was most affected by –1.8 p.p. manufacture of machinery and equipment (drop in branch performance by 19.8%), by next –0.9 p.p. manufacture of other non-metal mineral products (drop by 15.1%) and by –0.7 p.p. manufacture of electrical appliances (drop by 11.5%). Industrial production went up most in manufacture of motor vehicles, trailers and semi-trailers (contribution +3.0 p.p., growth by 21.5%), manufacture of food products (contribution by +0.6 p.p., growth by 13.5%) and manufacture of rubber and plastic products (contribution +0.5 p.p., growth by 8.2%). The seasonally adjusted volume of industrial production decreased by 0.3% as against October.

In November, sales in industry at current prices went down by 3.1% y-o-y, direct export sales by 0.9%. Their share in total revenues of industrial enterprises made up 46.9%; in November 2008 it was less by 1.0 p.p.

The y-o-y average number of employees in enterprises with 50+ employees went down by 12.5%. Their average monthly wage amounted to CZK 27 220 was up nominally and really by 7.5% and 7.0%, respectively.

The y-o-y value of new orders in selected industrial branches increased by 8.0%, value of foreign orders went up by 11.0%. The annual gain was monitored in July 2008 last time.

In January to November volume of industrial production went down by 14.6% as against the same period of the year 2008. Sales in industry (at current prices) as well as direct export sales dropped by 16.2% and 16.3%, respectively. The y-o-y value of new orders dropped by 18.3%, of which foreign orders by 17.3%. Number of employees in enterprises with 50+ employees went down by 11.2%, an average monthly wage was up nominally by 3.0%, really went up by 2.0%.

Construction ¹

In November, the y-o-y volume of construction output went up by record-breaking 7.8% y-o-y, at constant prices. After working days adjustment went up by 6.4%. Due to favourable weather workers performed construction work without limitation. For the first time after 13 months the gain in structural engineering output by 16.3% attended the gain in building construction output by 3.4%. The m-o-m seasonally adjusted construction output went up by 2.8% in terms of real comparison.

An average number of employees in construction enterprises (with 50+ employees) went down by 1.1% y-o-y. Their average monthly wage reached CZK 32 670 and increased by 5.6% y-o-y, in terms of real comparison its growth was 5.1%.

In January to November volume of construction output was really lower only by 1.0% than during first eleven months of 2008. In construction enterprises (with 50+ employees) an average number of employees were the same like in the last year, the average monthly wage increased nominally by 3.4% and really by 2.4%.

External trade

The y-o-y volume of exports stagnated (index 100,0%), volume of imports decreased by 8.0% (all in current prices). The drop in exports stopped among others also due to the lower November 2008 comparative basis, in imports it has been remaining for the fourteenth month. As a result of a drop in imports, the trade balance ended in a surplus amounted to CZK 14.5 bn, than was by CZK 15.6 bn higher y-o-y; it was the largest November balance since the independent Czech Republic was established. The trade balance with EU member states was active by CZK 47.1 bn, (by CZK 8.4 bn higher on a year ago) and with non-EU countries passive by CZK 32.6 bn, last year in November the debit was worse by CZK 7.2 bn. All groupings of goods had positive effect on the trade balance; except trade in drinks and tobacco. The trade balance improved especially in machinery and transport equipment and industrial durable goods. After seasonal adjustment, both m-o-m exports and imports went up by 1.1% and by 3.0%, respectively. Trends in exports went up by 0.5%; trends in imports remained at the level of the previous month.

In January to November both y-o-y exports and imports went down by 15.4% and 19.2%, respectively. The trade balance surplus amounted to CZK 150.4 bn was record-breaking, by CZK 74.1 bn higher (by 97.1%) than during first eleven months of year 2008.


DECEMBER 2009

Consumer prices

In total, consumer prices level increased by 0.2% in December m-o-m , prices of goods by 0.2%, whilst prices of services did not change. Prices rise of food and non-alcoholic drinks by 1.6% had the decisive effect on this growth. On the other hand prices of public transport, alcoholic drinks, postal and telecommunication services reduced. In terms of the y-o-y comparison, consumer prices growth accelerated to 1.0% (by 0.5 p.p. more than in November 2009). The price level increase influenced especially prices in housing, water, energy and fuel (effect by 1.2 p.p., prices increase by 4.4%), prices in public transport (effect by 0.4 p.p., prices increase by 4.5%) and prices in alcoholic drinks and tobacco (effect by 0.2 p.p., prices increase by 2.0%). A downward effect on the consumer prices level came from a price development in prices of food and non-alcoholic drinks (effect –0.6 p.p., price reduction by 3.5%). In total, prices of goods dropped by 0,2% and prices of services went up by 2.6%.

Inflation rate, i. e. an increase in the average consumer price index for last 12 months (year 2009) related to the average CPI for the preceding 12 months (year 2008) reached 1.0% in December and the annual average inflation rate was lower in 2003 last time. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 1.5%.

In Q1 the y-o-y consumer prices went up by 2.1%, in Q2 by 1.4% and in Q3 only by 0.1%. In Q4 the growth accelerated to 0.4%. The administratively regulated prices grew by 10.7% in Q1, during next quarters that growth stepwise decelerated to 9.4%, 7.2% and 5.1%, respectively. In Q1, the market prices were at the level of the same period of the last year 2008, then they were lower than in previous year; in Q2 by 0.6%, in Q3 by 1.7%, and in Q4 by 0.7%.

In December, the average harmonized index of consumer prices increased in the Czech Republic by 0.5% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 0.9%).

Unemployment

The registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.6 p.p. m-o-m, and exceeded the nine-percent-limit (9.2%) at the end of the year. The unemployment rate in females went up by 0.3 p.p. to 10.3%, in males increased by 0.8 p.p. to 8.4%. As against end of the year 2008 the registered unemployment rate was higher by sizeably 3.2 p.p., however, that difference has not being changed for four months. Labour offices registered 539.1 thousand job applicants; i.e. this number was higher at the end of 2003 and 2004, this m-o-m gain amounted to 30.2 thousand persons, the total number of job applicants was higher by 186.9 thousand, i.e. by 53.1% annually. The m-o-m share of freshly graduated students and adolescents in the total number of unemployed people amounted to 6.6% at the end of the year, as against previous month decreased by 0.5 p.p., as against end of year 2008 by 0.4 p.p. Number of job opportunities has constantly been decreasing for 16 months; to the end of year 2009 reached only 30.9 thousand. Number of applicants per one job opportunity was 17.4 compared to 3.9 applicants at the end of year 2008.

In 2009 the average registered unemployment rate amounted to 8.0%, it grew stepwise from 7.0% in Q1 to 7.9% in Q2; to 8.4% in Q3 and 8.7% in Q4.


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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