Selected economic indicators - September

In September, industrial production volume dropped y-o-y for the twelfth time, whilst construction output went up. Both exports and especially imports decreased, the y-o-y drop has been remaining the whole year. The trade balance ended in a surplus in all months of this year. In September was fewer one day than on a year ago.
In October the m-o-m consumer prices reduced also y-o-y. The registered unemployment rate and also number of job applicants went down as against September.
SEPTEMBER 2009

Industry ¹

In September, the y-o-y volume of industrial production was by 11.9% lower (after working days adjustment by 9.7%). The total drop was most affected by –2.8 p.p manufacture of machinery and equipment (drop in branch performance by 28.4%), by next –2.0 p.p. manufacture of metal constructions and metalworking products and –1.5 p.p. manufacture of other non-metal mineral products. The performance in these two branches decreased by more than 22%. Industrial production went up especially in manufacture of food products (contribution +0.1 p.p., growth by 3.5%). The seasonally adjusted volume of industrial production decreased by 1.4% as against August.

In September, sales in industry at current prices went down by 16.2%, direct export sales by 13.4%. Their share in total revenues of industrial enterprises made up 49.6%; in September 2008 it was less by 1.6 p.p.

The y-o-y average number of employees in enterprises with 50+ employees went down by 14.6%, and the drop is getting down constantly. Their average monthly wage amounted to CZK 23 460 was up nominally and really by 6.9%.

The y-o-y value of new orders in selected industrial branches decreased by 13.8%, value of foreign orders dropped by 10.9%.

In January to September volume of industrial production went down by 16.8%, in the course of individual quarters the drop decreased stepwise from 19.0% in Q1 to 18.1% in Q2 and in Q3 to 13.0%. Sales in industry (at current prices) as well as direct export sales dropped by 17.9%. The y-o-y value of new orders dropped by 21.0%, of which foreign orders by 20.4%. Number of employees in enterprises with 50+ employees went down by 11.1%, average monthly wage was up nominally by 2.5%, really went up by 1.3%.

Construction ¹

In September, the y-o-y volume of construction output affirmed the growth in August. It went up by 3.6% y-o-y, at constant prices, after working days adjustment by 4.6%. The growth of structural engineering output by 23.0% was enough to compensate the drop in building construction by 5.2%. The m-o-m seasonally adjusted construction output went up by 2.4% in terms of real comparison.

An average number of employees in construction enterprises (with 50+ employees) went down by 0.2% y-o-y. Their average monthly wage reached CZK 27 617 and by zero inflation increased also really by 6.1% y-o-y.

In January to September volume of construction output was really lower by 2.5% on a year than during first nine months of 2008. After a deep drop by 11.4% in Q1, in the course of next quarters construction output went up moderately by 1.0% and 0.1%, respectively. In construction enterprises (with 50+ employees) an average number of employees increased by 0.4%, the average monthly wage increased nominally by 3.3% and really by 2.1%.

External trade

The y-o-y volume of both exports and imports decreased by 13.9% and by 18.0%, respectively (all in current prices), the drop in both is standing for the whole year. As a result of a deeper drop in imports than exports, the trade balance ended in a surplus amounted to CZK 17.8 bn, which was by CZK 7.3 bn higher on a year ago, which was the largest balance in September since the independent Czech Republic was established. The trade balance with EU member states was active by CZK 46.4 bn, (by CZK 0.4 bn higher on a year ago) and with non-EU countries passive by CZK 28.6 bn, last year in September the debit was higher by CZK 6.9 bn. Trade in mineral fuel (impact of drop in prices) and in machinery and transport equipment had a positive effect on the foreign trade balance. After seasonal adjustment, exports went down by 1.8% and imports by 1.0%, m-o-m. Trends increased by 0.6% in exports and in imports by 0.4%.

In January to September both y-o-y exports and imports went down by 17.5% and 20.2%, respectively. During the first three quarters of the last year the y-o-y volume of exports went up by 4.5% and 3.9%, respectively. The trade balance surplus amounted to CZK 117.7 bn was record-breaking, by CZK 35.1 bn higher than during first nine months in 2008. The development in quarters was different in comparison to previous years when it has been dropping constantly. This year the surplus between Q1 and Q2 increased from CZK 33.4 bn to CZK 43.8 bn, in Q3 reached CZK 40.6 bn. Whilst in Q1 the surplus remained almost at the 2008 level, in the course of next two quarters was higher, stepwise by CZK 13.6 bn and CZK 22.0 bn.


OCTOBER 2009

Consumer prices

In total, consumer prices level decreased by 0.2% in October m-o-m , prices of goods and services dropped identically. Prices reduction of automotive fuel by 2.6%, of natural gas by 2.8% and prices of package holidays by 2.4% had the decisive effect on this drop. Prices of food and non-alcoholic beverages have been dropping for nine consequent months. On the other hand prices of clothing and footwear increased. In terms of the y-o-y comparison, consumer prices level reduced also by 0.2%; such a result was reached in August 2003. The price level reduction was influenced especially by prices in food and non-alcoholic beverages (effect –1.0 p.p., price reduction by 6.2%) and in public transport (effect –0.3%, price reduction by 3.3%). A downward effect on the consumer prices level came from a price development in prices of housing, water, energy and fuel (1.2 p.p., prices increase by 4.6%). In total, prices of goods dropped by 2,0% and prices of services went up by 2.8%.

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 1.6% in October and was by 0.5 p.p. lower than in September 2009. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 2.3%.

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

Unemployment

In October , the registered unemployment rate (according to the Ministry of Social Affairs) similarly like in previous years decreased this time by 0.1 p.p. m-o-m and amounted to 8.5% to the end of the month. The unemployment rate of females decreased by 0.2 p.p. to 9.9%, in males remained at 7.4%. As against end of October 2008 the registered unemployment rate was higher by sizeably 3.3 p.p. Labour offices registered less than one half million job applicants; i.e. 498.8 thousand, this m-o-m drop amounted to 2.0 thousand persons. The y-o-y total number of unemployed people increased by 187.1 thousand, I.e. by 60%. The m-o-m share of freshly graduated students and adolescents in the total number of unemployed people did not change and remained at 7.6%; on a year ago was higher by 0.9%. Number of job opportunities has constantly been decreasing for 14 months; to the end of October reached 35.8 thousand m-o-m. Number of applicants per one job opportunity at the end of October was 13.9 compared to 2.4 applicants in October 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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