Selected economy indicators - April 2005
Selected economic indicators
Publication Date: 10. 06. 2005
Product Code: r-1101-05
MARCH 2005
Industry
In March the y-o-y industrial production index reached only 100.1%; among others as a result of lower number of working days. Industrial production rose in manufacture of intermediate goods and energy producing materials coincidently by 1.0%, decreases were observed in manufacture of capital goods. The largest decrease was recorded for manufacture of consumer durables. The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture of machinery and equipment, manufacture of transport equipment and manufacture of rubber and plastic products. On the other hand, manufacture of leather and leather products, non-metallic mineral products and manufacture of wood and wood products. The m-o-m seasonally adjusted industrial production (compared to February 2005) did not change, the growth rate trend increased.
Sales in industry at constant prices were higher by 1.7% y-o-y . Direct export sales increased by 2.5%, its share in total sales stood at 48.1% at current prices. Industrial foreign-controlled enterprises (its influence on industry has still been rising) increased its sales in industry by 5.9% in real terms, direct export sales were up by 4.3%. In March number of employees in industry increased by 0.7% compared to March 2004, labour productivity (sales per employee) was 1.0% up. The y-o-y average monthly wage amounted to CZK 17 593 was up both nominally and really by 4.1% and 2.6%, respectively. Average wagesgrew faster and outstripped increase of labour productivity. As a result unit wage costs increased by 3.1%.
The y-o-y volume of new orders in selected industrial branches decreased almost by 1.0% at current prices in March , foreign orders (sharing two thirds of total amount of orders) remained on the March 2004 level.
In Q1 industrial production jumped by 4.0%, compared to the equal period of the last year. Sales in industry rose by 6.0%, direct export sales were up by 10.7%. An average monthly wage increased by 3.7% nominally and by 2.1% really, by employment growth in industry by 0.8%. As a result of labour productivity grew by 5.1%, y-o-y unit wage costs dropped by 1.3%.
Construction
In March total construction output decreased by 16.0% at constant prices. The main reason for the reported drop in construction output included several facts that acted at the same time: the high preference basis of March 2004 (invoicing of construction work in the category of the lower VAT rate), the average temperature was lower than in March 2004 and one less working day in March 2005 than in March 2004 (manual workers thus worked 20 less hours on average in March 2005 than in March 2004). Number of employees in construction enterprises with 20+ employees rose by 3.7% compared to the equal period of the last year. The average monthly wage reached CZK 17 707 and increased year-on-year nominally by 4.7% nominally and by 3.2% in real terms. Labour productivity decreased by 18.7% per employee. The m-o-m (i. e. as against February 2005) seasonally adjusted construction outputs lessened by 2.3% in real terms, the growth trend went down m-o-m.
In Q1 the total construction output lessened by 3.2% than a year ago. In construction enterprises with 20+ employees labour productivity dropped by 5.8%, the average monthly wage increased by 2.7% nominally and by 1.1% in real terms. Compared to the equal period of the last year, unit wage costs went by 9.0% up.
In March 2005 planning and building control authorities permitted 10 505 dwellings to be constructed; the approximate value of newly permitted dwellings reached CZK 29.1 bn at current prices what was by 37.0% more than a year ago.
External trade
In terms of y-o-y comparison, in March growth paces of exports decelerated to 6.0%, while imports fell by 0.5% at current prices. This is the lowest growth since January 2004. The trade balance ended in a record-breaking surplus over last 12 years. The surplus of CZK 6.0 bn was by CZK 9.3 bn higher compared to March 2004.Trade balance with EU member states reached a surplus of CZK 23.1 bn, trade balance with non-EU member states ended in a deficit of CZK 17.1 bn. Trade balance improved in trade in machinery and transport equipment, chemicals and related products, semi-finished products and materials and manufactured goods classified chiefly by material. Deficit of trade in mineral fuels, lubricants and related materials worsened. The m-o-m seasonally adjusted exports and imports (i. e. as against February 2005) decreased by 2.9% and 3.5%, respectively. The growth rate of the trend cycle component in both exports and imports has been falling since October 2004.
In Q1 , in terms of y-o-y comparison both exports and imports jumped by 14,1% and 10.6%. The trade surplus was a typical feature for preceding three months and reached CZK 14.7bn, which was by CZK 13.4 more q-o-q. There was the best quarterly surplus since the Czech Republic was established; the quarterly trade balance reached a surplus only four times over preceding twelve years .
APRIL 2005
Consumer prices
In April the m-o-m consumer prices level slightly increased by 0.1% (i.e. compared to March 2005); both prices of goods and services increased concurrently. Increase in the price level was influenced by a marked increase in prices of automotive fuel by 8.4%, in restaurants and hotels prices of accommodation services, prices of stays at spas and summer kinds of footwear. In terms of y-o-y comparison, consumer prices growth accelerated to 1.6% (it was by 0.1 p. p. higher than in March). Prices development in transport (automotive fuel), dwelling, water, energy and natural gas resulted in the consumer prices acceleration. As against April 2004 prices of medicaments, prices of meals in public catering, restaurants and hotels, tobacco products and financial services raised most. In total, prices of goods went up by 0.2%, prices for services were higher by 4.2%. 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 2.6% in April.
In April the y-o-y increase of harmonised index of consumer prices reached 1.4% in the Czech Republic (according to a flash estimate published by Eurostat, the HICP in Euro-zone was 2.1%).
Unemployment
According to the new methodology unemployment reached 8.9% at the end of April, which was by 0.5 percentage points less m-o-m and by 0.1 percentage points less y-o-y. The females’ unemployment rate was 10.4%, the unemployment rate of males was 7.7%.
According to the former methodology , the unemployment rate was 9.8% at the end of April, which was by 0.5 percentage points less m-o-m and by 0.4 percentage point less y-o-y.
Labour offices registered 512.6 thousand at the end of April, which is by 27.9 thousand people less than last month and by 22.5 thousand people less than in the equal period of the last year. The y-o-y difference has still been getting deeper this year. There were 479.8 thousand of unemployed job applicants being able to take a job immediately. Share in number of unemployed freshly graduated students to the total number of unemployed people dropped to 7.3% (a year ago it was 9.1%). Number of applicants per one job opportunity was 9.5 at the end of April; at the end of April 2004 it was 12.5.
Harmonised unemployment rate 1 has been calculated by Eurostat to obtain an international comparison, reached 8.2% in the Czech Republic in April and was by 0.2 p. p. lower than a year ago. An unemployment rate in the Czech Republic is under the EU 25 average.
This press release was not edited for language.
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1 This estimation
- comprises integrated methodology in the EU (processed by Eurostat)
- is based on the quarterly level of unemployment rate (according to ILO) and selected surveys of labour forces (SSLF) proceeded in households
- is based on trends of the registered unemployment rate (Ministry of Labour and Social Affairs of the Czech Republic), then the monthly distribution is being carried out