Selected economy indicators - April 2007

 
The y-o-y volume of industrial production has been growing the third month with double-digit paces in March. Volume of construction output enlarged by more than one fourth. Growth paces of exports outstripped that of imports, the trade balance ended in a highest March surplus during the history of the Czech Republic.
In April, the y-o-y level of consumer prices was considerably higher compared to March, also the y-o-y growth of prices accelerated. The registered unemployment rate has ceaselessly been decreasing since the end of January. 
MARCH 2007
 
Industry
 
In March, the y-o-y volume of industrial production markedly increased by 12.7%, after working days adjustment by 14.6% (in March was less one working day compared to the last year). In total, manufacturing of electrical and optical appliances (by 3.7 p. p.) contributed to this growth in the branch by 29.0%, next 2.6 p. p. manufacturing of means of transport and equipment  (growth by 12.2%), and 1.7 p.p. manufacturing and servicing of machinery and equipment (growth by 27.8%). On the other hand, the volume of production lessened in branches of manufacturing of basic metals, metallurgical and metalworking products, production of food and drinks, tobacco products, and, similarly as in February, in manufacturing of energy producing raw materials, manufacturing of electricity, gas and water and manufacturing of leather and leather products. The m-o-m seasonally adjusted industrial production increased by 2.3%, the trend has been growing up by 1.3%.
 
In March, sales in industry were higher by 13.2% in terms of real comparison y-o-y, after working days adjustment was higher by 15.3%. Direct export sales increased by 17.0%. Industrial foreign-controlled enterprises increased its sales in industry by 16.9% and direct export sales by 17.8%. Its share in total sales was 61.5% at current prices; in March 2006 it was 59.2%. 
 
Number of employees ¹ in industry increased by 2.9%, (i. e. by 33.2 thousand people) y-o-y; labour productivity (sales per employee) was by 9.1% up. The y-o-y average monthly wage amounted to CZK 20 443 was up both nominally and really by 7.1% and 5.1%, respectively. Labour productivity grew faster than increase of average wages; therefore unit wage costs decreased by 1.8%.
 
The y-o-y volume of new orders in selected industrial branches enlarged, its y-o-y value increased by 6.3% in March, value of new foreign orders enlarged by 7.4%. 
 
In Q1, as against the equal period of 2006, the volume of industrial production enlarged by 12.4%, after working days adjustment it was by 13.1%. Sales in industry enlarged by 13.4% in real terms, direct export sales jumped by 19.4%. Number of employees in industry increased by 2.8%, an average monthly wage increased nominally by 7.7% (amounted to CZK 19 679) really by 6.1%.  Labour productivity grew by 9.6%, as a result the y-o-y unit wage costs dropped by 1.7%.
 
Construction
 
In March, the y-o-y volume of construction output was higher by 26.4% (at constant prices), after working days adjustment by 28.3%. Especially in building construction high paces of growth were recorded. Favourable weather also in this month enabled construction companies pursue all kinds of constructions. In construction enterprises (with 20+ employees), volume of new constructions, reconstructions and modernization in building construction (by 19.0 p. p.) and in civil engineering (3.7 p.p.) most affected the y-o-y growth. Construction work abroad jumped by 54.7% and contributed to this growth by 2.2 p. p. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased really by 1.4 % in March, the m-o-m trends grew by 2.5%.
 
Number of employees ² in construction enterprises (with 20+ employees) went up by 0.6% as against March 2006. The y-o-y average monthly wage reached CZK 23 063 and increased nominally by 11.0% and by 8.9 % in real terms. Labour productivity per employee increased by 25.1% and unit wage costs decreased by 10.4%.
 
In March, planning and building control authorities granted by 3.6% y-o-y more construction permissions to be constructed. The approximate value of newly permitted constructions arrived at CZK 36.2 bn was by 76.3% higher on a year before. Building permissions of non-residential constructions (new plant halls including technologies) and other constructions (highways and motorways) supported most this growth. Planning and building authorities permitted 3 609 new dwellings, which was by 30.3% more than in March 2006.
 
In Q1 extraordinarily favourable weather markedly affected the development in construction.  In total, the y-o-y construction output was by 28.9%, building construction most supported this favourable growth. Number of employees in construction enterprises (with 20 + employees) remained at the Q1/2006 level; so labour productivity per employee increased equally as construction output in such enterprises (by 28.7%). An average monthly wage amounted to CZK 20 161 increased nominally and really by 13.1% and 11.3%, respectively. Planning and building control authorities granted more by 2.6% permissions to be constructed, estimated value of permitted constructions was by one fourth higher.
 
External trade
 
In March, the y-o-y value of both exports and imports enlarged by 13.0% and 11.8%, respectively (all at current prices). Due to the appreciation of the koruna against EUR and USD exports and imports rose faster in terms of both euros and dollars. The trade balance ended in a surplus of CZK 12.4 bn, which was by CZK 3.3 bn higher on a year before. This is the highest positive balance in March in the history of the Czech Republic. Trade balance with EU 27 member states was active by CZK 36.7 bn, with non-EU 27 states passive by CZK 24.3 bn. Increase of trade balance in machinery and transport equipment had a positive effect on trade balance y-o-y, improvement of trade balance in raw materials and mineral fuels had the same contribution. According to preliminary data, m-o-m seasonally adjusted exports increased by 0.9%, and imports by 0.3%. Trends of both exports and imports came up by 1.1% and 1.2%, respectively.
 
In Q1, volume of both exports and imports enlarged by 15.3% and 13.8%, respectively. Development of external trade continued growing with double-digit expansion. The y-o-y trade balance surplus amounted to CZK 37.0 bn was higher by CZK 11.1 bn.
 
APRIL 2007
 
Consumer prices ³
 
In April, m-o-m consumer prices level increased markedly by 0.7%; prices of goods by 1.1%, prices of services by 0.2%. This jump was brought on increase in prices of food, automotive fuel, tobacco products; prices of natural gas, heating and net rental in housings with controlled rental. Surcharge for medical prescriptions also went up by 12.3%. The y-o-y growth of consumer prices accelerated to 2.5% (more by 0.6 p.p. than in March 2007). The y-o-y growth in consumer prices affected most markedly prices in food and non-alcoholic drinks, then in housing, water, energy and fuel. Prices of water supply increased by 6.7%, prices of sewerage collection by 5.5%, prices of electricity by 7.9% and prices of solid fuel by 16.9%. Net rental in dwellings with controlled rental jumped by 9.3%.  Prices level of goods increased by 1.9% y-o-y, prices of services 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 2.2% in April like in March.
 
In April 2007, the y-o-y increase of harmonised index of consumer prices reached 2.7% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.8%).
 
Unemployment
 
The registered unemployment rate in April 2007, decreased by 0.5 p. p., as against March. At the end of the month the registered unemployment rate reached 6.8%; it decreased by 1.5 p. p. as against end of April 2006. The females’ unemployment rate was 8.3%; the unemployment rate of males was 5.6%. Labour offices registered 402.9 thousand job applicants at the end of April, which is approx. less by 27.5 thousand people as against last month. As against end of April 2006 it declined markedly by almost 17.1%, which was the lowest one since July 2004. Share in number of unemployed freshly graduated students and juveniles to the number of unemployed people has been dropping faster and its share in total number of unemployed people went down by 0.2 p.p. to 6.2%, last year arrived to 6.8%. Number of job opportunities went up again. Number of applicants per one job opportunity was 3.5 at the end of April; compared to April 2006, when it was 6.6 persons.
 
This press release was not edited for language. 
 

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¹ Starting January 2007, the Czech Statistical Office proceeded to publish data on number of people employed. This new index comprises also persons working in sense of contract for work (outside employment) and other people who are engaged to work in a company but they are outside employment. Data have been recalculated to a full-time employment. Calculation of an average salary and labour productivity also reflects this arrangement. The y-o-y data comparability is guaranteed.
² Employees working in construction enterprises through personnel agencies as well as foreigners working in construction are not involved into average registration number of employees
³ Starting January 2007 consumer prices indices has been calculating in accordance with revised consumption basket, which respects the 2005 weight structure. By this revision of calculation, data published to the end of December 2005 did not change. 
 

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