Selected economic indicators - October

In October, industrial production volume dropped y-o-y for the thirteenth time in the time series, whilst construction output slightly went up. Both exports and especially imports decreased, the y-o-y drop has been remaining over the year. The trade balance ended in a surplus in all months of this year. In October was fewer one day on a year ago.
In November the m-o-m consumer prices increased y-o-y. The registered unemployment rate and also number of job applicants went up to the highest level in this year.
OCTOBER 2009

Industry ¹

In October, the y-o-y volume of industrial production was by 7.2% lower (after working days adjustment by 4.9%). The total drop was most affected by –2.4 p.p. manufacture of machinery and equipment (drop in branch performance by 25.5%), by next –1.6 p.p. manufacture of metal constructions and metalworking products (drop by 17.4%) and –1.3 p.p. manufacture of other non-metal mineral products (drop by 19.7%). Industrial production went up most in manufacture of motor vehicles, trailers and semi-trailers (contribution +1.8 p.p., growth by 12.4%). The seasonally adjusted volume of industrial production increased by 1.0% as against September.

In October, sales in industry at current prices went down by 11.4% y-o-y, direct export sales by 8.2%. Their share in total revenues of industrial enterprises made up 48.4%; in October 2008 it was less by 1.7 p.p.

The y-o-y average number of employees in enterprises with 50+ employees went down by 12.1%, and the sinking stopped. Their average monthly wage amounted to CZK 24 265 was up nominally and really by 3.4% and 3.6%, respectively.

The y-o-y value of new orders in selected industrial branches decreased by 11.2%, value of foreign orders dropped by 5.1%.

In January to October volume of industrial production went down by 15.9% as against the same period of the last year. Sales in industry (at current prices) as well as direct export sales dropped by 17.5% and 17.7%, respectively. The y-o-y value of new orders dropped by more than one fifth (by 20.4%), of which foreign orders by 19.4%. Number of employees in enterprises with 50+ employees went down by 11.0%, average monthly wage was up nominally by 2.5%, really went up by 1.4%.

Construction ¹

In October, the y-o-y volume of construction output went up by tiny 0.1% y-o-y, at constant prices, similarly like in Q3, after working days adjustment went up by 1.4%. The gain in structural engineering output by 14.7% exceeded the drop in building construction by 7.0%. The m-o-m seasonally adjusted construction output went down by 3.0% in terms of real comparison.

An average number of employees in construction enterprises (with 50+ employees) went down by 0.5% y-o-y. Their average monthly wage reached CZK 27 150 and increased slightly by 0.1% y-o-y, in terms of real comparison its growth was 0.3% at the drop in consumer prices.

In January to October volume of construction output was really lower by 2.2% on a year than during first ten months of 2008. In construction enterprises (with 50+ employees) an average number of employees increased by 0.1%, the average monthly wage increased nominally by 3.1% and really by 2.0%.

External trade

The y-o-y volume of both exports and imports decreased by 11.2% and by 21.1%, respectively (all in current prices), the drop in both is standing for the thirteenth month. As a result of a deeper drop in imports than exports, the trade balance ended in a surplus amounted to CZK 17.5 bn, than was by CZK 22.7 bn higher y-o-y; it was the largest interannual balance and the largest October balance since the independent Czech Republic was established. The trade balance with EU member states was active by CZK 49.1 bn, (by CZK 6.0 bn higher on a year ago) and with non-EU countries passive by CZK 31.6 bn, last year in October the debit was worse by CZK 16.7 bn. All groupings of goods had positive effect on the trade balance; especially trade in mineral fuel and in machinery and transport. After seasonal adjustment, exports went up by 0.2% and imports went down by 2.8%, m-o-m. Trends in exports remained at the level of the last month; trends in imports went down by 1.2%.

In January to October both y-o-y exports and imports went down by 16.8% and 20.3%, respectively. The trade balance surplus amounted to CZK 135.8 bn was record-breaking, by CZK 58.4 bn higher than during first ten months in 2008.


NOVEMBER 2009

Consumer prices

In total, consumer prices level increased by 0.2% in November m-o-m , prices of goods by 0.4%, whilst prices of services dropped by 0.2%. Prices rise of automotive fuel by 3.7% (after the two-months drop), food and non-alcoholic drinks (after the nine-months drop) and clothing had the decisive effect on this growth. On the other hand prices of holidays and culture decreased. In terms of the y-o-y comparison, after the drop in October consumer prices level came to grow, this time by 0.5%. The price level increase was influenced especially by prices in housing, water, energy and fuel (effect by 1.2 p.p., prices increase by 4.5%) and prices in alcoholic drinks and tobacco (effect by 0.2 p.p., prices increase by 2.5%). A downward effect on the consumer prices level came from a price development in prices of food and non-alcoholic drinks (effect –0.8 p.p., price reduction by 4.9%). In total, prices of goods dropped by 0,8% and prices of services went up by 2.7%.

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 1.3% in November and was by 0.3 p.p. lower than in October 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 1.8%.

In November 2009, the average harmonized index of consumer prices increased in the Czech Republic by 0.2% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 0.6%).

Unemployment

In November , the registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.1 p.p. m-o-m, and amounted to 8.6% to the end of the month. Whilst the unemployment rate of females stagnated at 10%, in males increased by 0.2 p.p. to 7.6%. As against end of November 2008 the registered unemployment rate was higher by sizeably 3.3 p.p., that difference has not being changed for three months. Labour offices registered over one half million job applicants again ; i.e. record-breaking 508.9 thousand, this m-o-m gain amounted to 10.1 thousand persons. The y-o-y total number of unemployed people increased by 188.6 ² thousand, i.e. by almost 59%. The m-o-m share of freshly graduated students and adolescents in the total number of unemployed people amounted to 7.1%, as against previous month and annually decreased identically by 0.5 p.p. Number of job opportunities has constantly been decreasing for 15 months; to the end of November reached 32.9 thousand. Number of applicants per one job opportunity at the end of November was 15.5 compared to 2.9 applicants in November 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.

² We apologize for an incorrect figure given in the previous version. This figure is now correct.

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