Selected economy indicators - April 2004
Selected economy indicators
Publication Date: 11. 06. 2004
Product Code: r-1101-04
MARCH AND JANUARY-MARCH 2004
Industry
In March industrial production accelerated furthermore. Year-on-year industrial production index reached 115.3% or 110.8%, after working days adjustment (in March 2004 there were two more working days compared to March 2003). The highest growth rates occurred in manufacture of consumer durables (+33.8%) and intermediate goods (+ 21.0%). The following CZ-NACE activities were main contributors to the rise in industrial production: manufacture of electrical and optical equipment, manufacture of basic metals and fabricated metal products. Decreases were recorded mainly for manufacture of machinery and equipment. Seasonally adjusted industrial production was higher by 2.8% m-o-m (e.g. compared to February 2004).
Sales in industry grew similar as industrial production rate. Sales in industry at constant prices were higher by 15.7% or 11.0% (after working days adjustment) y-o-y . Manufacture of rubber and plastic products was also one of contributors to the high growth of total sales in industry. Direct export sales rose by 21.6% and stood at 50.0%. Industrial foreign-controlled enterprises raised their sales by 20.1% y-o-y; direct exports sales amounted to 72.6%. Decrease in average number of employees in industry has continued (fell by 17.5 thousand of employees, i.e. 1.5% y-o-y), labour productivity concurrently went (sales per employee) 17.5% up. In March average monthly nominal wage amounted to CZK 16 939, rising by 10.8% or 8.1% really. Lower growth of average monthly wage compared with labour productivity increase caused fall in unit wage costs by 5.7%.
In Q1 2004 industrial production increased by 9.0% y-o-y (after working days adjustment it was 8.2%), sales in industrial production were 9.1% up (after working days adjustment it was 8.3% up). In the previous year no such substantial gains were noted. The average number of employees in the industry fell by 1.6%, average monthly nominal wage increased by 8.6%, really by 6.2%. Labour productivity was 10.8% up implied unit wage costs dropped by 2.0% y-o-y.
Construction
Compared to previous months, in March a growth rate of construction output accelerated, total construction output at constant prices increased by 21.4%, or 18.4% (after working days adjustment) y-o-y. Especially important growth was recorded on new construction of building and civil engineering, as well as construction work carried out abroad. Volume of construction work on repairs and maintenance of buildings raised less. The number of persons employed in construction enterprises with 20+ employees rose by 2.8%, their average monthly wage reached CZK 16 936, rising by 11.6% nominally and 8.9% really. Labour productivity per employee increased by 18.2% and unit wage costs dropped by 5.6% up. Seasonally adjusted construction output increased by 2.8% m-o-m (e.g. compared to February 2004).
In Q1 2004 construction output has increased by 16.2% y-o-y (after working days adjustment by 15.7%). This high pace of construction output influenced lower comparative basis as well, as in the equivalent period of the last year construction output decreased by 0.7% y-o-y. In enterprises with 20+ employees labour productivity increased by 13.2% y-o-y, average monthly wage rose by 8.5% nominally and 6.0% really. Unit wage costs were 4.2% down.
External trade
In March, current price exports and imports rose extremely by 18.2% and 20.4% y-o-y . On the increase of both exports and imports was particularly trade in non-ferrous metals, electrical machinery, apparatus and appliances, general industrial machinery and equipment, iron and steal, professional, scientific and controlling instruments and plastics. On the other hand below-the-average growth was recorded in lower exports of computers and computer parts, as well as imports of mineral fuels and related materials and miscellaneous consumer articles. In comparison to the trade balance surplus (in February), in March trade balance deficit reached CZK 4.6 bn, which was by 2.9 bn higher than the year before, but lower than in 1995 – 2002. Increase of external trade balance deficit was influenced by decrease in surplus from inward processing. By territories, the largest surplus increases were observed in trade with Germany, Slovak Republic, Austria and Belgium, on the contrary trade balance worsened with the Netherlands, China, Italy, France and Japan. Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, external trade grew faster in US dollars and slower in terms of euro. Seasonally adjusted exports and imports were by 9.5% and 6.9% lower m-o-m .
In Q1 2004 both exports and imports were up by 12.1% and 11.1%. The trade deficit reached only CZK 1.3 bn (affected by surplus in February), which was by CZK 3.0 bn less y-o-y.
APRIL 2004
Consumer prices
In April consumer prices level did not change m-o-m (i.e. compared to March). Prices of goods dropped by 0.1%, while prices of services stagnated. The increase in prices of food and non-alcoholic beverages and tobacco (effect of excises decrease) was compensated by lower prices in natural gas (-3.4%) and non-seasonal domestic recreations. Prices increase by 2.3% influenced higher prices in goods (+1.2%) and in services (+4.0%) y-o-y . Except for communications and post services where prices rose owing to higher VAT on public telecommunication services imposed in January 2004, the highest price increase was reported for food and non-alcohol beverages and automotive fuels. Prices in financial services went up by 13.2%. 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 amounted to 1.0% in April (i.e. 0.2 percentage points more than in March).
Unemployment
At the end of April 2004 registered unemployment rate (source: Ministry of Labour and Social Affairs of the Czech Republic) reached 10.20% (males 9.03%, females 11.69%), which was 0.45 percentage points less m-o-m, but in comparison to the equivalent period of the last year it was 0.57 percentage point more. At the end of April 2004 labour offices registered 535.1 thousand of unemployed job applicants; compared to April 2003 this number increased by almost one third. Especially number of unemployed males decreased. In spite of it at the end of April
2004 there were by 25.7 thousand job applicants more compared to April 2003. Number of job opportunities increased by 1.5 thousand (compared to April 2003). At the end of April there were 12.5 applicants per one job opportunity, which was somewhat more than a year ago (12.4).
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