Selected economy indicators - April, May 2008

Compared to the previous year, in March there were two working days less, due to the seasonal effects the rates of growth of the time series were lower than in the preceding periods. In March, for the first time after 66 months, the y-o-y growth of industrial production volume dropped, and volume of construction outputs was higher than the last year. Value of exports and imports went down y-o-y, the trade balance surplus was lower as against last year.
The April consumer prices level was higher than in March, the y-o-y prices growth slowed down. The registered unemployment rate decreased in April, it was sizeably lower than by the end of April 2007. 
MARCH 2007
 
Industry
 
In March, the y-o-y volume of industrial production was by 2.1% lower. The first drop after 66 months was among others affected by Easter and by lower number of working days; after working days adjustment industrial production was higher by 1.5%. In total, this drop (by 0.9 p.p.) contributed production of food and beverages, tobacco products (reduction of manufacturing in the branch by 11.5%), identically by next 0.4 p.p. manufacturing of textile and textile products, manufacturing of basic metals, metallurgic and metalworking products (drop by 15.8%, and 3.5%, respectively). In remained branches also a drop was recorded. The seasonally adjusted industrial production decreased by 2.4% in comparison to February level; the trends have been growing up by 0.3%.
 
In March, sales in industry were lower by 2.7% in terms of real comparison y-o-y (after working days adjustment was higher by 0.9%), direct export sales by 2.3%. Industrial foreign-controlled enterprises decreased its sales in industry by 3.1% and direct export sales by 3.0%. Its share in total sales was 59.4% at current prices; in March 2007 it was 60.9%. 
 
An average number of employees in industry increased by 2.2%, (i. e. by 26.2 thousand people), their average monthly wage amounted to CZK 22 321 in March was up nominally by 8.8% on a year ago, really by 1.6%. Labour productivity ¹ in industry was down by 5.2%.
 
In March, the y-o-y value of new orders in selected industrial branches decreased by 4.9% , value of foreign orders dropped by 9.0%. 
 
In Q1 as against year 2007 volume of industrial production was by 5.7% higher. Sales in industry rose by 5.2% and direct export sales by 5.9%. Number of employees in industry increased by 2.6%, an average monthly wage increased nominally by 11.3% and really by 3.6%. Labour productivity ¹ rose by 1.9%.
 
Construction
 
In March, the y-o-y volume of construction output was by 0.8% higher (at constant prices), after working days adjustment by 3.8%. The lower gain was affected by lower number of working days and a high March 2007 basis, when construction expanded its performance by more than a quarter. In construction enterprises (with 20+ employees) the y-o-y volume of construction work by 0.4 % was markedly affected by new construction, reconstruction and modernization in structural engineering (effect by 2.0. p.p.) that increased by 8.0% as a result of work on financially high-priced constructions of motorways, highways, railways, including its reconstruction and modernization. Production of building construction dropped, volume of work on reconstruction, maintenance and other work also lessened. After an extraordinary drop in February, the y-o-y volume of construction work abroad was higher again (by 13.2%). The seasonally adjusted construction outputs were really by 1.1% lower m-o-m in March 2008, the trends were up by 0.3%.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 0.1% as against March 2007. The y-o-y average monthly wage reached CZK 26 020 and increased by 13.0%, and by 5.5% in real terms. Labour productivity per employee increased by 0.5% compared to March 2007 level.
 
In March, planning and building control authorities granted by 4.1% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 33.2 bn, and in comparison to March 2007 dropped by 8.4%. Planning and building authorities permitted 2 825 new dwellings, which was less by 21.7% than in March 2007.
 
In Q1, the y-o-y volume of construction output was by 4.2% higher in terms of real comparison. In construction enterprises (with 20+ employees) increased number of employees by 0.6%, the labour productivity by 3.2%, the average monthly wage increased nominally by 13.8% and really by 5.9%.
 
External trade
 
In March, the y-o-y value of exports lessened by 5.6%, imports by 2.4% (both in current prices). The trade balance ended in a surplus of CZK 8.1 bn, which was by CZK 7.4 bn lower on a year ago. That is the highest y-o-y drop since April 2003. The trade balance with EU 27 member states was active by CZK 41.1 bn, with non-EU 27 states passive by CZK 33.0 bn. Worsening in trade of machines, means of transport and mineral fuels had a negative effect on the trade balance. Drop in exports of road vehicles and a marked growth of imports of petrol and natural gas had also a negative impact. According to preliminary data, m-o-m seasonally adjusted exports lessened by 6.2%, imports by 9.0%. The trend component went down by 1.2% in exports and rose by 0.2% in imports.
 
In Q1, volume of exports enlarged by 5.1% and imports by 6.1%, the dynamics of both, exports and imports was moderate on a year ago. The y-o-y trade balance surplus amounted to CZK 34,6 bn was by CZK 3,5 bn lower.
 
 
APRIL 2008
 
Consumer prices
 
In April, m-o-m consumer prices level increased by 0.4%; prices of goods increased by 0.5%, prices of services increased by 0.3%. The prices increase in April affected higher prices of natural gas by 2.9%, heat energy for heating and water heating by 0.6%, prices of food, non-alcoholic and alcoholic beverages and tobacco also increased. Prices of new summer clothing and footwear were also higher. The y-o-y growth of consumer prices 6.8% was by 0.3 p.p. lower than a month ago. The y-o-y development of prices level increase influenced most prices of housing, water, energy and fuel (2.6 p.p., prices growth by 9.9%), food and non-alcoholic drinks (1.6 p.p., prices growth by 9.6%), alcoholic drinks and tobacco (0.9 p.p., prices growth by 10.6%). Prices in health care delivery increased by 28.6%. In total, prices of goods jumped by 6.0% and prices in services by 7.9%.
 
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 4.7% in April and was by 0.4 p.p. higher than in March. Living expenses of individual social groups were in employees' households higher by 4.5%, in households with children with minimal income by 5.7% and in households of retired persons by 5.9%.
 
In April 2008, the y-o-y increase of average harmonized index of consumer prices reached 6.7% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.3%).
 
Unemployment
 
The registered unemployment rate in April 2008 decreased by 0.4 p.p. as against March 2008 and arrived to 5.2% to the end of April. The females’ unemployment rate decreased by 0.3 p.p. to 6.6% and the unemployment rate of males decreased by 0.4 p.p. to 4.2%. As against end of April 2007 the registered unemployment rate was by 1.6 p.p. lower. Labour offices registered 316.1 thousand job applicants at the end of April, which was by 20.2 thousand lower than a month ago, as against end of April 2007 number of job applicants reduced by 86.8 thousand. As against previous month, number of unemployed freshly graduated students and adolescents dropped, however its share in the total number of unemployed persons did not change and amounted to 6.1%, at the end of April 2007 reached 6.2%. Number of job opportunities jumped to the record-breaking number 152.3 thousand. Number of applicants per one job opportunity at the end of April was only 2.1; compared to April 2007, when it was 3.5 persons.
 
This press release was not edited for language.
 

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¹ Labour productivity is defined as a proportion of index of sales in industry  (at constant prices) to index of number of people employeed and people working through agencies
² Employees working in construction enterprises through personnel agencies are not involved into average registration number of employees

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