Selected economy indicators - August 2005

JULY 2005

Industry

In July the y-o-y industrial production index slowed down somewhat and reached 111.2, trend of growth accelerated. Industrial production increased in all groupings; mainly in manufacture of energy and manufacture of consumer durables. The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture of coke and petrol products, manufacture of transport equipment and manufacture of rubber and plastic products. Highest decreases were observed in manufacture of leather and leather products, manufacture of textile and clothing products and manufacture of energy producing materials. The m-o-m seasonally adjusted industrial production increased by 3.5%, the growth rate trend accelerated.

In July sales in industry were higher by 6.8% y-o-y (at constant prices) direct export sales increased by 8.1%. Industrial foreign-controlled enterprises increased its sales in industry by 13.0% in real terms; direct export sales were up by 8.6%. Number of employees in industry increased by 0.6% (i. e. by 7.1 thousand people) compared to July 2004, labour productivity (sales per employee) was 6.1% up. The y-o-y average monthly wage amounted to CZK 18 216 was up both nominally and really by 3.0% and 1.3%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 2.9%.

The y-o-y volume of new orders in selected industrial branches increased by 0.5% in July. Volume of new foreign orders, sharing less than two thirds of the whole amount, enlarged by 1.7%.

January to July industrial production enlarged by 5.2% compared to the equal period of the last year. Sales in industry rose by 7.0% in real terms, direct export sales were up by 10.7%. An average monthly nominal wage increased by 4.1% nominally and by 2.5% really, at employment growth in industry by 0.5%. As a result labour productivity grew by 6.5%, y-o-y unit wage costs dropped by 2.3%.

Construction

In July the y-o-y construction output jumped by 6.1% in real terms. The phase of extreme fluctuations of growth paces of construction output (owing to changes in VAT categories last year) has terminated. Volume of construction work especially of structural engineering enlarged. Number of employees in construction enterprises (with 20+ employees) rose by 5.2% in July, compared to the equal period of the last year. The average monthly wage reached CZK 19 003 and increased year-on-year by 2.0% nominally and by 0.3% in real terms. Labour productivity increased by 0.3%, unit wage costs increased by 1.7%. The m-o-m seasonally adjusted construction outputs decreased by 0.5 % in real terms while the growth trend kept growing.

January to July construction output remained at the same level like last year. In construction enterprises with 20+ employees number of employees rose by 4.3% y-o-y, labour productivity dropped by 3.1%, the average monthly wage increased by 3.3% nominally and by 1.7% in real terms. Unit wage costs increased by 6.6%.

In July 2005 planning and building control authorities permitted 12.4 thousand dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 25.9 bn that was by 1.9% more than a year ago.

External trade

In terms of y-o-y comparison, in July exports rose by 2.5%, imports fell by 3.5% (at current prices). The trade balance ended in a surplus of CZK 1.2 bn (in July 2004 ended in deficit of CZK 7.3 bn). This has been the first surplus ever recorded in July in the history of the Czech Republic. Trade balance with EU member states reached a surplus of CZK 18.8 bn, trade balance with non-EU member states ended in a deficit of CZK 17.6 bn. The balance improved especially in machinery and transport equipment, manufactured goods classified chiefly by material; on the other hand deficit of trade in mineral fuels, lubricants and related products was recorded. According to preliminary data, m-o-m seasonally adjusted exports jumped by 3.0% and imports decreased by 7.4%. Growth rate trend of exports accelerated, while that of imports has been slowing down since May.

January to July, in terms of y-o-y comparison both exports and imports jumped by 8.7% and 2.7%. The trade balance surplus reached CZK 43.2 bn, which was by CZK 57.6 bn more y-o-y.


AUGUST 2005

Consumer prices

In August, m-o-m consumer prices level did not change (prices of goods dropped by 0.4% and prices of services went up by 0.5%). Seasonal prices increase of recreational stays abroad compensated decrease in prices of food and non-alcoholic beverages and prices of summer shoes and clothing. The y-o-y growth in consumer prices remained at 1.7%. In majority groupings prices growth in August was similar to July, except prices in post and telecommunication services that speeded up its growth rate by 1.5 p. p. As against August 2004 prices of public post and telecommunication services, prices of natural gas, electricity, water supply, refusal collection, prices of automotive fuel and transportation services increased most. In terms of y-o-y comparison, prices of goods increased by 0.6%, prices of services were higher by 3.5%. 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 2.1% in August and since beginning of this year has permanently been getting down.

In August the y-o-y increase of harmonised index of consumer prices reached 1.4% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 2.1%).

Unemployment

The registered unemployment rate according to the new methodology reached 8.9% at the end of August and increased by 0.1 p. p. as against last month. In terms of y-o-y comparison it decreased by 0.4 p. p. The females’ unemployment rate was 11.1 %; the unemployment rate of males was 7.2%.
According to the former methodology, the unemployment rate was 9.6% at the end of August, which was by 0.1 p. p more m-o-m and by 0.6 p. p. less y-o-y.

Labour offices registered 505.3 thousand job applicants at the end of August, which is approx. by 5 thousand people more as against last month and by 30.8 thousand people less compared to the equal period of the last year. There were 481.0 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 climbed to 7.4% (increase by 1.2 p. p.); last year it was 9.6%). Number of applicants per one job opportunity was 8.5 at the end of August; at the end of August 2004 it was 11.0.

This press release was not edited for language.

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