Selected economy indicators - August 2004
Selected economic indicators
Publication Date: 13. 10. 2004
Product Code: r-1101-04
Industrial production has kept up its growth in July as well, and has reached more than 10% as it has during preceding four month. Volume of construction work has expanded slightly y-o-y. Number of working days lessened in July 2004 compared to July 2003 brought together considerably effect. Due to high growth rate of both imports and mainly exports ended the July trade balance in the lowest deficit since 1995.
In August consumer prices remained at the July 2004 level, however since March 2002 they reached the highest y-o-y level. The registered unemployment rate also gained during the second holiday month, this time entirely owing to the increase in number of graduate students.
JULY AND JANUARY- JULY 2004
Industry
In July y-o-y industrial production index reached 111.0%, after working days adjustment it was 118.0%. Production of capital goods was recorded to be higher by more than one fourth, on the other hand production of energy and consumer non-durables decreased. The highest increases in the industrial production were reported for the following CZ-NACE activities: manufacture of electrical and optical equipment, manufacture of basic metals and fabricated metal products, manufacture of transport facilities and equipment. Decreases were recorded for: manufacture of coke, nuclear fuels, refined petroleum products, manufacture of food and food products, beverages and tobacco, and, traditionally, manufacture of leather and leather products.
The m-o-m (i. e. compared to June 2004) industrial production increased by 1.4% after seasonally adjustment.
Sales in industry at constant prices were higher by 5.1% y-o-y (or 12.0% after working days adjustment). Direct export sales rose by 8.6% really and their share in total sales industrial enterprises stood at almost 47%. Industrial foreign-controlled enterprises raised their sales by 11.1% at constant prices y-o-y, direct export sales by these enterprises increased by 10.1%. The decrease in number of employees in industry was getting dropped by June, in July accelerated slightly to 7.4 thousand, i.e. 0.6% y-o-y. Labour productivity (sales per employee) increased by 5.8%. In July the average monthly nominal wage amounted to CZK 17 655, which was up both nominally and really by 6.6% and 3.3% than in the last year. As a result unit wage costs put up by 0.8%.
January to July the y-o-y industrial production grew by 10.8% (at the same number of working days). Sales in industry rose by 10.1%, direct export sales rose by 14.4% being compared to the same period. The average number of employees in the industry fell by 1.0%, average monthly nominal wage increased by 7.3%, really by 4.6%. Labour productivity was 11.1% up; the y-o-y unit wage costs dropped by 3.4%.
Construction
The y-o-y volume of construction output in July at constant prices expanded slightly by 0.3% (after two-month decline) after working days adjustment it was by 3.9%. The y-o-y number of employees (in construction enterprises with 20+ employees) rose by 3.8%. In July the average monthly wage reached CZK 18 495 rising by 3.6% nominally and really by 0.4% y-o-y.
January to July 2004 the y-o-y construction outputs increased by 13.4%. In enterprises with 20+ employees labour productivity increased by 9.5 % y-o-y, average monthly wage rose by 6.9% nominally and 4.2% really. Unit wage costs were 2.4% down, compared to the first seven months in 2003.
External trade
In July the y-o-y volume of external trade increased, current prices exports and imports were up by 27.0% and 18.8%, respectively. Due to the appreciation of the Czech koruna against the US dollar and against the euro, external trade grew faster both in terms of US dollars then in the Czech korunas . Higher growth rate of the trade balance favourably affected trade balance results. The trade balance ended in a deficit of CZK 4.9 bn, which was by CZK 6.9 bn lower (compared to July 2003), which was the lowest level since 1995. Trade with EU member states reached surplus CZK 12.7 bn (trade with Germany CZK 8.5 bn), trade with non-EU states ran deficit CZK 17.6 bn. Favourable development occurred mainly in trade in machinery and transport equipment, also in chemicals and related products; on the contrary the balance deteriorated considerably in trade in petroleum and petroleum product, semi-finished products. The m-o-m seasonally adjusted exports and imports were up by 11.8% and 8.6%, respectively.
January to July 2004 the y-o-y exports and imports increased by 22.3% and 17.7%, respectively. The trade deficit reached CZK 15.6 bn; compared to the equal period of the last year dropped by 14.0% (according to the quarterly updated results).
AUGUST 2004
Consumer prices
In August consumer prices level remained unchanged. In average prices of goods went down by 0.3%, while prices of services rose by 0.5%. Prices in recreational and cultural services (rise in seasonal prices for holiday stays abroad reached 7.5%) put up. The fall in prices of food and non-alcoholic beverages was brought about by the cut in prices of potatoes, fresh vegetable and fruit; prices of clothes and footwear (lower seasonal summer prices) and prices of public telecommunication services also reduces. The slight drop in prices in transport was caused by special discounts in car prices, on the other hand prices of automotive fuel increased. In terms of y-o-y comparison, consumer prices grew by 3.4%, which caused mainly higher prices in post and telecommunication (due to changes in VAT rate in public telecommunication services), public catering, hotels and restaurants (prices of food in restaurants and canteens), prices of food and non-alcoholic beverages. In total prices for goods rose by 1.8%, prices for services for 5.8%. 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 2.0% in August.
Unemployment
Since July 2004 Ministry of Labour and Social Affairs of the Czech Republic has published the registered unemployment rate according to the new methodology, which is keeping with ways of calculation in EU-members states (ILO methods used in Eurostat). In accordance with it unemployment reached 9.3% at the end of August 2004. Labour offices registered almost 500 thousand of unemployed job applicants being able to take a job. According to the former methodology, the registered unemployment rate was 10.2% being increased traditionally during August. Unemployment development negatively affected lots of freshly graduated students (almost 3.5 times more than a year ago). They have had share by 1.4 p. p. lower in unemployment than at the end of August 2003. Number of job possibilities increased by 3.0 thousand that was 48.5 thousand. Number of applicants per one job opportunity was 11.0 compared to the last year when it was 11.5.
This press release was not edited for language.