Selected economy indicators - August, September 2008

In July were more three working days as against last year, which affected the large y-o-y volume of industrial production and volume of construction outputs. The trade balance ended in a surplus for the first time since 1993, by the y-o-y growth of exports and a drop of imports volume.
The August consumer prices level was lower than in July, the y-o-y prices growth decelerated. The registered unemployment rate did not change m-o-m, number of registered job applicants slightly increased in the second holiday month. 
JULY 2007
 
Industry
 
In July, the y-o-y volume of industrial production was by 6.7% higher, after working days adjustment by 0.6%. In total, the growth contributed fast growing manufacturing of electrical and optical appliances by 2.7 p.p. (growth in the branch by 20.1%); next 1.2 p.p. manufacturing of means of transport and transport equipment (growth by 5.8%), and by 1.1. p.p. manufacturing of basic metals, metallurgical and metalworking products (growth in the branch by 8.8%. Drop in manufacturing of textiles, textile and clothing products, manufacturing of wood and wooden products had the biggest negative impact. The seasonally adjusted industrial production decreased by 0.8% in comparison to the June level; the trends have been growing up by 0.1%.
 
In July, sales in industry went up by 7.0% in terms of real comparison y-o-y, direct export sales by 11.0%. Industrial foreign-controlled enterprises increased its sales in industry by 7.9% and direct export sales by 11.5%. Its share in total sales was 58.6% at current prices; in July 2007 it was 59.5%.
 
An average number of employees in industry increased by 0.6%, (i.e. by 7.6 thousand people), their average monthly wage amounted to CZK 23 140 in July was up nominally by 9.2% on a year ago, really by 2.2%. Labour productivity ¹ rose by 6.2%.
 
In July, the y-o-y value of new orders in selected industrial branches increased by 0.6% , value of foreign orders dropped by 1.0%.
 
In January to July, as against the same period of the last year volume of industrial production was by 6.0% higher. Sales in industry rose by 5.8% and direct export sales by 8.6% in terms of real comparison. Number of employees in industry increased by 1.6%, an average monthly wage increased nominally by 10.0% and really by 2.7%. Labour productivity ¹ rose by 3.6% y-o-y.
 
Construction
 
In July, the y-o-y volume of construction output was by 6.9% higher, in terms of real comparison, after working days adjustment by 1.8%. The m-o-m seasonally adjusted volume of construction output increased by 1.1% really; the trends were up by 0.4%.
 
In construction enterprises (with 20+ employees), the y-o-y extension of construction work by 7.7% was affected by a larger volume of work on new constructions, reconstructions and modernizations in structural engineering (affect 7.2 p.p.). Volume of construction work abroad, work on repairs, maintenance and other work grew with double-digit paces. Only volume of construction work on new constructions in building construction went down.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 1.2% as against July 2007. The y-o-y average monthly wage reached CZK 25 646 and increased by 15.5%, and by 8.0% in real terms. Labour productivity per employee increased by 9.0% compared to July 2007 level.
 
In July, planning and building control authorities granted by 13.5% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 35.0 bn, and in comparison to July 2007 jumped by 16.2%. Whilst in new constructions the approximate value dropped only in non-residential buildings, in changes of completed constructions dropped in majority of ways of construction. Planning and building authorities permitted 4 117 new dwellings, which was more by 18.2% on a year ago.
 
In January to July, the y-o-y volume of construction output was by 1.6% higher in terms of real comparison. Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.4% and labour productivity per employee increased in these enterprises by 2.0%. The average monthly wage increased nominally by 12.5% and really by 5.1%. Number of building permissions granted by planning and building control authorities went up by 9.0% y-o-y, the approximate value of permitted constructions increased by 17.6%.
 
External trade
 
In July, the y-o-y volume of exports increased by 3.2% and the y-o-y volume of imports lessened by 0.9% (both in current prices). Machines and means of transport had the highest proportion in exports and imports (52.5% and 39.5%, respectively). Since 1993 the trade balance ended in a surplus of CZK 7.2 bn, which was by CZK 8.1 bn higher on a year ago. The trade balance with EU 27 member states was active by CZK 40.1 bn, with non-EU 27 states passive by CZK 32.9 bn. Improvement in trade of machines, means of transport, semi-finished goods; materials had a positive effect on the trade balance. On the contrary, the deficit in trade in mineral fuels deepened.  According to preliminary data, m-o-m seasonally adjusted exports decreased by 0.8%, imports increased by 1.6%. The trend indicates a drop in exports by 0.5% and a growth in imports by 0.1%.
 
In January to July, volume of exports enlarged by 5.6% and imports by 4.7%; the paces of growth of both were by more than 10.0 p.p. lower on a year ago. The trade balance surplus amounted to CZK 72.8 bn was by CZK 16.3 bn higher than in first seven months 2007.
 
 
AUGUST 2008
 
Consumer prices
 
In August, m-o-m consumer prices level decreased by 0.1%; prices of goods by 0.5%, prices of services increased by 0.4%. The drop in prices in August affected especially prices development of foods, non-alcoholic drinks and public traffic. Prices growth of tobacco products, package holidays and social care services had a reversed effect.
 
The y-o-y growth of consumer prices by 6.5% was by 0.4 p.p. lower than in previous month. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.8 p.p., prices growth by 10.8%), food and non-alcoholic drinks (1.5 p.p., prices growth by 9.1%), identically by 0.6 p.p. in alcoholic drinks and tobacco (prices growth by 6.4%) and health care delivery (prices growth by 31.6%).  In total, prices of goods jumped by 5.5% and prices of services by 8.0%.
 
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 6.1% in August and was by 0.3 p.p. higher than in July. According to social groupings, living costs (hypothetical rental fee is not involved) in households of employees jumped by 5.8%, in households with children and minimal incomes by 7.4%, in households of pensioners by 7.7%.
 
In August 2008, the y-o-y increase of average harmonized index of consumer prices reached 6.2% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.8%).
 
Unemployment
 
In August, the registered unemployment rate remained at the same level in the second holiday month like a month ago and at the end of the month amounted to 5.3%, the unemployment rate of females was 7.0% and men 4.0%. As against August 2007, the registered unemployment rate was by 1.1 p.p. lower. Labour offices registered 312.3 thousand job applicants at the end of July, which was by 2.3 thousand higher than a month ago, as against August 2007 decreased by 60.4 thousand. Number growth of unemployed freshly graduated students and adolescents by 2.6 thousand affected entirely the m-o-m gain. As against preceding month, share in total number of unemployed people increased by 0.8 p.p. to 6.3% and remained for the forth time above the level of the last year. Number of job opportunities increased to 150.9 thousand. Number of applicants per one job opportunity at the end of August was only 2.1; compared to August 2007, when it was 2.8 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 employed 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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