Selected economy indicators - August 2006
Selected economy indicators – July and August 2006
Publication Date: 13. 10. 2006
Product Code: r-1101-06
The y-o-y gain of industrial production reached double-digit value in July again. Also the y-o-y volume of construction output has been expanding for third month already. Volume of imports grew faster than exports, the trade balance ended in a deficit, likewise in preceding years.
In August the y-o-y level of consumer prices increased by 0.2% m-o-m; its y-o-y growth accelerated. During the second holiday month the registered unemployment rate stagnated.
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JULY 2006
Industry
In July the y-o-y volume industrial production reached 11.8% 1 , except April, the double-digit gain was recorded for all months of this year. Favourable development in manufacturing of transport equipment (by 5.6 p. p., increase by more than one third), manufacturing of electrical and optical devices and appliances (by 2.1 p.p., increase by 17.7%) and manufacturing of basic metals, metallurgical and metalworking products (by 2.0 p.p., increase by 14.8%) was recorded. The reverse effect had manufacturing of chemicals and chemical products, drugs and synthetic fibres, manufacture of food products, beverages, tobacco products, manufacturing of textile, textile products and clothing and manufacturing of fibre, paper and paper products; publishing and printing. The m-o-m seasonally adjusted industrial production increased by 0.4%, the trend has concurrently been growing up by 0.7%.
In July sales in industry were higher by 12.2% (at constant prices), direct export sales increased by 13.6%. Industrial foreign-controlled enterprises increased its sales in industry by 23.1% and its share in total sales was 59.3%. Direct export sales there were up by 20.4%. Number of employees in industry increased (by 1.2%, i. e. by 13.6 thousand people) y-o-y; labour productivity (sales per employee) was 10.8% up. The y-o-y average monthly wage amounted to CZK 19 281 was up both nominally and really by 5.7% and 2.7%, respectively. Labour productivity grew faster and outstripped increase of average wages; unit wage costs decreased by 4.6%.
The y-o-y volume of new orders in selected industrial branches increased by 16.7% (at current prices) in July . Volume of new foreign orders enlarged by 20.5%.
In January to July , volume of industrial production expanded by 11.8%, as against an equal period of the last year. In terms of real comparison sales in industry jumped by 12.3%, direct export sales were up by 12.2%. Under increased number of employees in industry an average monthly wage enlarged nominally and really by 6.3% and 3.3%. Labour productivity went up by 10.5%, the y-o-y unit wage costs dropped by 3.8%.
Construction
In July the y-o-y volume of construction output was higher by 12.2% (at constant prices); and expanded for the third month with double-digit paces. All kinds of construction work added to that growth except for other construction work whose volume markedly lessened. Volume of new constructions, reconstructions and modernization in civil engineering (by 4.7 p. p.) and in structural engineering (4.6 p. p.) affected this growth most favourably. Number of employees in construction enterprises (with 20+ employees) subtly rose by 0.7%, as against July 2005. The y-o-y average monthly wage reached CZK 20 608 and increased nominally by 8.5% and by 5.4 % in real terms. Labour productivity increased by 11.9% per employee, owing to unit wage costs dropped by 3.0%. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased really by 1.4 %, the m-o-m trends grew by 1.3%.
In July , planning and building control authorities granted by 4.7% y-o-y less dwellings to be constructed. The approximate value of newly permitted dwellings arrived at CZK 32.0 bn was by 23.5% more on a year before especially due to granted constructions of railroad tracks, buildings and reconstructions of motorways. It was permitted 3 121 new dwellings , which is by 913 less than in July 2005.
In January to July according to preliminary data, the y-o-y volume of construction output enlarged by 5.5% in real terms. Labour productivity increased by 4.6% in enterprises with 20+ employees, number of employees grew by 0.8%, an average wage increased nominally by 6.6% and by 3.6% in real terms. Unit wage costs rose by 1.9%.
External trade
In July the y-o-y volume of both exports and imports enlarged by 14.4% and 14.8%, 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 deficit of CZK 1.2 bn, i. e. more by CZK 0.5 bn than a year ago. Trade balance with EU member states was active by CZK 20.4 bn, with non-EU states passive by CZK 21.6 bn. Trade in machinery and transport equipment, beverages, tobacco favourably influenced the y-o-y figures; on the other hand trade balance deficit worsened in trade in mineral fuels. According to preliminary data, m-o-m seasonally adjusted exports increased by 5.6% whilst imports decreased by 2.0%. Trends of exports came up by 1.7%; those of imports by 1.1%.
In January to July y-o-y exports and imports expanded by 14.4% and 14.9%, respectively. The y-o-y surplus of the trade balance amounted to CZK 36.0 bn was lower by CZK 0.6 bn on a year before.
AUGUST 2006
Consumer prices
In August m-o-m consumer prices increased by 0.2%. Prices of goods decreased by 0.3%, while prices of services increased by 0.8%. This rise was brought on increase in prices in holiday and culture (prices for package holidays in high season), health (prices of drugs and additional charges for drugs) and public transport (automotive fuels). The y-o-y growth of consumer prices accelerated to 3.1% from 2.9% last month. The y-o-y growth in consumer prices affected markedly (by 1.9 p.p.) price changes in housing, water, energy and fuel, then food and non-alcoholic beverages (by 0.5 p.p.) Prices of goods increased by 2.9% 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 2.7% in August that was by 0.1 p. p. more than in July.
In August 2006 the y-o-y increase of harmonised index of consumer prices reached 2.6% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 2.3%).
Unemployment
The registered unemployment rate in August reached 7.9% at the end of the month; it remains on the level of July. In terms of y-o-y comparison the registered unemployment rate decreased by 1.0 p. p. The females’ unemployment rate was 10.1%; the unemployment rate of males was 6.3%. Labour offices registered 458.7 thousand job applicants at the end of August, which is approx. by 0.5 thousand people more as against July 2006. Share in number of unemployed freshly graduated students and juveniles to the total number of unemployed people went up to 7.1% (increase by 1.1 p. p. as against last month); last year reached 7.4%. Number of job opportunities has constantly been rising; number of applicants per one job opportunity was 4.9 at the end of August; at the end of August 2005 it was 8.5 persons.
This press release was not edited for language.
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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