Selected economy indicators - August 2007

 
In July, the y-o-y volume of industrial production returned to the double-digit growth, on the contrary volume of construction output dropped already second month. Despite higher growth paces of exports than imports the trade balance ended in a deficit for the first time in this year, albeit a moderate one.
In August, the y-o-y level of consumer prices was higher compared to July, the y-o-y growth of prices slightly moderately accelerated. Number of registered job applicants went down in the second holiday month, the registered unemployment rate did not change m-o-m. 

JULY 2007
 
Industry
 
In July, the y-o-y volume of industrial production enlarged by 11.5%, after working days adjustment by 8.8% (in July was more one working day than the last year). In total, manufacturing of means of transport and equipment supported this growth by 3.7 p. p. (growth in the branch by 18.5%), manufacturing of electrical and optical appliances supported this growth with 2.9 p. p. (growth in the branch by 23.1%), by next 1.4 p. p. manufacturing and servicing of machinery and equipment (growth by 22.3%). Drop in production of manufacturing of coke, refining of petroleum, mining of energy producing raw materials and manufacturing of basic metals, metallurgical and metalworking products had the most negative impact. The m-o-m seasonally adjusted industrial production increased by 0.6%; the trend has been growing identically.
 
In July, sales in industry were higher by 13.0% in terms of real comparison y-o-y, after working days adjustment by 10.4%. Direct export sales increased by 13.9%. Industrial foreign-controlled enterprises increased its sales in industry by 15.8% and direct export sales by 13.8%. Its share in total sales was 60.5% at current prices; in July 2006 it was 59.2%. 
 
Number of employees ¹ in industry increased by 2.6%, (i. e. by 29.9 thousand people) y-o-y; their y-o-y average monthly wage amounted to CZK 21 260 in July was up both nominally and really by 9.4% and 6.9 %, respectively. Labour productivity was up by 9.5%.
 
The y-o-y volume of new orders in selected industrial branches enlarged, its y-o-y value increased by 8.6% in July, value of new foreign orders enlarged by 6.1%. 
 
In January to July, as against the equal period of 2006, the volume of industrial production enlarged by 10.5% Sales in industry enlarged by 11.6% in real terms, direct export sales jumped by 16.2 %. Number of employees in industry increased by 2.4%, an average monthly wage increased nominally by 8.0% and really by 5.9%.  Labour productivity grew by 8.3% y-o-y.
 
Construction
 
In July, the y-o-y volume of construction output was lower by 1.7% in terms of real comparison, after working days adjustment by 3.1%. The y-o-y drop has been remaining for two months. In July was affected by a fall of work on structural engineering constructions, as a result of time delay of preparation of financing, lack of some professions and shortage of building material. In construction enterprises (with 20+ employees) construction work affected contributed to the drop in construction work by 1.9% y-o-y new construction, reconstruction, modernization in structural engineering (effect of - 5.6 p.p.), work on services and maintenance  (-1.0 p.p.) and other work (-0,2%). Work in abroad increased by 15.1% and contributed by 0.6 p. p.; also an impact of building construction on new construction (by 4.3 p.p.) had a positive effect. The seasonally adjusted construction outputs were really by 0.2% higher m-o-m in July, on the other hand the trends dropped by 0.2% m-o-m.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 1.9% as against July 2006. The y-o-y average monthly wage reached CZK 22 253 and increased by 8.0% and by 5.6 % in real terms. Labour productivity per employee remained on the level of last year in July and unit wage costs increased by 8.0%.
 
In July, planning and building control authorities granted by 17.5% y-o-y less construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 30.2 bn was less by 5.9% than in June last year. Newly built constructions comprise around two thirds of approximate value of constructions. As a result of high-priced constructions of highways, roads and dwellings its approximate value rose markedly. Planning and building authorities permitted 3 483 new dwellings, which was by 11.6% more than in July 2006.
 
In January to July construction output was in real terms by 9.9% higher than a year ago. Number of employees ² in construction enterprises (with 20 + employees) dropped by 1.1%; so labour productivity per employee increased in such enterprises by 10.2%. An average monthly wage increased nominally and really by 9.8% and 7.5%, respectively. Planning and building control authorities granted less by 9.9% y-o-y, orientation value of permitted dwellings remained on the last year level.
 
External trade
 
In July, the y-o-y value of both exports and imports enlarged by 20.7% a 18.7%, respectively (all at current prices). Due to the appreciation of the Czech koruna against EUR and especially against USD, exports and imports rose faster in terms of dollars and euros than in Czech koruna. The trade balance ended in a deficit of CZK 0.7 bn, which represents the y-o-y improvement by CZK 2.7 bn. Since 1993 the deficit has been a characteristic trait for the July balance. Trade balance with EU 27 member states was active by CZK 27.5 bn, with non-EU 27 states passive by CZK 28.2 bn. Increase in trade of machine and machinery products, means of transport, raw materials, mineral fuels and industrial consumer goods had a positive effect on trade balance, on the other hand worsening of trade of semi-finished product and chemicals, had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted exports increased by 4.8%, and imports increased by 1.9%. Trends of exports increased by 2.7%; trends of imports came up by 1.5%.
 
In January to July, volume of both exports and imports enlarged by 17.3% and 15.3% y-o-y. The y-o-y trade balance surplus amounted to CZK 55.7 bn was higher by CZK 27.3 bn more than a year ago, which is almost twice.
 
 
AUGUST 2007
 
Consumer prices ³
 
In August, m-o-m consumer prices level increased by 0.3%; prices of goods by 0.2%, prices of services by 0.5%. This jump was brought on increase in prices of tobacco products (by 6.2%) and prices of foreign holidays (by 6.1%). Net rental in dwellings with controlled rental and prices of solid fuel also went up (by 1.2% and 2.0%, respectively). The y-o-y growth of consumer prices decelerated moderately to 2.4% (more by 0.1p. p. than in July 2007). Development of prices level increase influenced most prices of alcoholic drinks and tobacco (prices of tobacco products increased by 26.6%), then in dwellings, water, energy, fuel (net rental increased in dwellings with control rental by 15.5%), food and non-alcoholic drinks. In total, prices of goods increased by 2.5%, prices if services by 2.3%.
 
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, was 2.0% in August, was less by 0.1 p.p. than in July.
 
In August 2007, the y-o-y increase of harmonised index of consumer prices reached 2.6% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.8%).
 
Unemployment
 
The registered unemployment rate remained in August on the same level like in July and to the end of the month arrived to 6.4%; the females’ unemployment rate was 8.3%; the unemployment rate of males was 4.9%. As against the end of August 2006 was by 1.5 p. p. lower. Labour offices registered 372.8 thousand job applicants at the end of August, which is approx. less by 3.8 thousand people than a year ago; only number of unemployed freshly graduated students and adolescents increased. As against end of August 2006 number job applicants went down by distinct 18.7%, what was the highest drop in this year. Number of unemployed freshly graduated students and adolescents increased by 3.1 thousand in the second month of holidays and its share on the total of unemployed people as against last month increased by 0.9 p.p. to 6.2%, and last year reached 7.1%. Number of job opportunities jumped again to the record-breaking level 133.4 thousand. Number of applicants per one job opportunity was 2.8 at the end of August; compared to August 2006, when it was 4.9 persons.
 
This press release was not edited for language.

---

¹ Starting January 2007, the Czech Statistical Office proceeded to publish data on number of people employed in the short-time statistics of industry. 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 second mentioned indicator comprises also number of agency workers who are not involved into the total number of employees. The y-o-y data comparability is guaranteed.
² Employees working in construction enterprises through personnel agencies 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 2006 did not change.

---