Selected economy indicators - April 2006

The y-o-y high growth of industrial production continued also in March. In this year for the first time volume of construction output exceeded the last year level, thereby the drop of the last months was balanced. Volume of both exports and imports accelerated growth paces, the monthly volume of exports reached the record level, the trade balance ended in surplus again.

In April the y-o-y level of consumer prices practically did not change. Total number of registered unemployed people has been diminishing for the fourth month, number of unemployed people dropped under one half of million.
MARCH 2006

Industry

In March the y-o-y volume industrial production reached 17,9% ¹, (for the last time in January 2001 higher growth was recorded), so the development started two months ago continued. After working days adjustment industrial production increased by 15.8% (in March was more one working day on a year before). Favourable development in manufacturing of transport equipment (by 7.0 p.p., increase by 38.4%), manufacturing of electrical and optical devices and appliances (by 3.6 p.p., increase by 32.4%) most contributed to this growth. In other four branches of processing industry the production grew roughly by one fourth. On the other hand only manufacturing of coke and refining of petrol decreased. The m-o-m seasonally adjusted industrial production increased by 3.0%; the trend has concurrently been growing up.

In March sales in industry were higher by 18.9% (at constant prices), direct export sales increased by 23.8%. Industrial foreign-controlled enterprises increased its sales in industry by 29.8%; its share in total sales was up by 59.4%. Direct export sales there were up by 28.0%. Number of employees in industry increased (by 2.4%, i. e. by 27.3 thousand people) y-o-y; labour productivity (sales per employee) was 16.0% up. The y-o-y average monthly wage amounted to CZK 18 766 was up both nominally and really by 6.2% and 3.3%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 8.4%.

The y-o-y volume of new orders in selected industrial branches increased by 26.5% in March. Volume of new foreign orders enlarged by 24.3% (at current prices).

In Q1, volume of industrial production expanded by 15.4%, as against an equal period of the last year. In terms of real comparison sales in industry jumped by 16.2%, direct export sales were up by 16.3%. An average monthly wage increased nominally and really by 6.1% and 3.2%, respectively, under increased number of employees. Labour productivity went up by 13.4%, the y-o-y unit wage costs dropped by 6.4%.

Construction

In March the y-o-y volume of construction output expanded by 8.8% (at constant prices); builders made up for a last months drop (after working days adjustment construction output expanded by 7.4%). Building construction contributed to this rise most, volume of construction work performed abroad also quickly expanded. Number of employees in construction enterprises (with 20+ employees) rose by 1.3%, as against March 2005. The y-o-y average monthly wage reached CZK 20 753 and increased by 17.3% nominally and by 14.1% in real terms, as a result of quarterly bonuses had been disbursed in most construction enterprises. Labour productivity increased by 6.5% per employee, owing to unit wage costs jumped by 10.1%. In terms of real comparison the m-o-m seasonally adjusted construction outputs decreased really by 0.4 %, the trends dropped fifth month already.

In March planning and building control authorities granted 9 120 dwellings to be constructed, which was by 13.2% less y-o-y; the approximate value of newly permitted dwellings arrived at CZK 20.5 bn was by 29.5% less on a year before. It was permitted 2 769 new dwellings, which is by 1 124 less than in March 2005.

In Q1 the y-o-y volume of construction output increased by 0.6% in real terms. In enterprises with 20+ employees labour productivity dropped by 1.6%, an average wage increased nominally by 7.5% and by 4.6% in real terms. Unit wage costs rose by 9.2%.

External trade

In March the trade balance ended a surplus of CZK 9.0 bn, i. e. more by CZK 1.7 bn than a year ago. The y-o-y volume of both exports and imports enlarged by 19.5% and 19.3%, respectively (at current prices) the highest growth paces of both exports and imports since January 2005 and November 2004 were recorded. Due to the appreciation of the koruna against EUR exports and imports rose faster in terms of euros, due to the depreciation of the Czech koruna against USD exports and imports rose slower in dollars. Trade balance with EU member states was active by CZK 27.5 bn, with non-EU states passive by CZK 18.5 bn. The y-o-y figures were favourably influenced by trade in machinery and transport equipment (+CZK 6.7 bn), on the other hand trade balance deficit worsened in trade in mineral fuels (deficit up by CZK 4.4 bn). According to preliminary data, m-o-m seasonally adjusted exports and imports expanded by 2.4% and 2.8%, respectively. Trends of both exports and imports came up by 1.2% and 1.8%, respectively.

In Q1 both exports and imports expanded by 14.3% and 15.0%, respectively. The y-o-y surplus of the trade balance amounted to CZK 27.3 bn was higher by CZK 1.1 bn.

According to approximate estimation both the y-o-y volume exports and imports expanded by 16.5% and 11.7% in real terms, respectively. Asset amounted to CZK 50.5 bn (at prices of previous year) was by CZK 24.3 bn higher than in Q1 2005.


APRIL 2006

Consumer prices

In April, m-o-m consumer prices increased minimally by 0.1%; owing to increase in prices of goods by 0.2%, in total prices of services remained on the same level. This rise was brought on increase in prices of automotive fuel by 4.8%, prices of natural gas, heat supply, accommodation services, spa stays and personal care services. The y-o-y rise in consumer prices increased by 2.8%, i. e. equally like in past two months. This growth was contributed by prices of postal and telecommunication services, housing (prices of natural gas jumped by 30.0%) and public transport (prices of automotive fuel increased by 7.3%). A long-term drop in prices of clothing and footwear, furnishing and housing equipment level had an impact on price-cutting; prices of food and non-alcoholic beverages were also slightly lower. In terms of y-o-y comparison, prices of goods increased by 2.3%, prices of services were higher by 3.6%. 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 2.3% in April that was by 0.1 p. p. more than in March.

In April 2006 the y-o-y increase of harmonised index of consumer prices reached 2.4% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was also 2.4%).

Unemployment

The registered unemployment rate decreased in April 2006 m-o-m, likewise in previous years. It reached 8.3% at the end of the month what means a drop by 0.5 p. p. in comparison to March, in terms of y-o-y comparison it decreased by 0.6 p. p. The females’ unemployment rate was 9.8%; the unemployment rate of males was 7.2%. Labour offices registered 486.2 thousand job applicants at the end of April, which is approx. by 26.4 thousand people less as against April 2005. Share in number of unemployed freshly graduated students to the total number of unemployed people went down to 6.8% (fall by 0.2 p. p. as against last month); last year reached 7.3%. Number of applicants per one job opportunity was 6.6 at the end of April; at the end of April 2005 it was 9.2 persons.

Harmonised unemployment rate 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
has been published by Eurostat to obtain an international comparison, reached 7.5 % in the Czech Republic in April and was by 0.5 p. p. lower than a year ago.

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1} Starting January 2006 the IPI results are being processed in accordance with a new methodology had been published in Press Release dated March 10, 2006

This press release was not edited for language.

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