Selected economy indicators - December 2005

In November volume of industrial production sustained long-term growth was mainly affected by industrial production growth in foreign-controlled enterprises. The y-o-y volume of construction output was lower than in October. By record-breaking expansion of exports and imports the monthly trade balance remained in a surplus.
The m-o-m consumer prices level decreased in December as a result of drop in prices of automotive fuel. In December the registered unemployment went up as usual; however less on a year before.

NOVEMBER 2005

Industry

A long-run growth in industrial production continued and was mainly contributed by foreign-controlled enterprises. In November the y-o-y industrial production index reached 107.2, mainly due to favourable development in manufacturing of transport equipment, manufacture of basic metals and fabricated metal products and manufacturing n.e.c. Decreases were recorded in manufacturing and supply of electricity, gas and water, manufacturing of textiles and textile products and manufacture of leather and leather products. The m-o-m seasonally adjusted industrial production increased by 0.9%, the trend has concurrently been growing up.

In November sales in industry were higher by 10.7% y-o-y (at constant prices) direct export sales by 8.8%. Industrial foreign-controlled enterprises markedly increased its sales in industry by 18.2% in real terms; direct export sales were up by 10.5%. Number of employees in industry increased by 0.2% (i. e. by 2.1 thousand people). Labour productivity (sales per employee) was 10.5% up. The y-o-y average monthly wage amounted to CZK 21 457 was up both nominally and really by 5.2% and 2.7%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 4.8%.

The y-o-y volume of new orders in selected industrial branches increased by 6.4% in November. Volume of new foreign orders enlarged by 4.0%.

January to November industrial production enlarged by 5.6%, compared to the equal period of the last year. Sales in industry rose by 8.0% in real terms, direct export sales were up by 10.3%. An average monthly nominal wage increased by 4.6% nominally and by 2.8% really; employment in industry did not change. As a result labour productivity grew by 8.1%, y-o-y unit wage costs dropped by 3.2%.

Construction

In November growth of construction output was lower than in October especially in new construction and in civil engineering works. The slowdown of growth was partly influenced by the high comparative basis of November 2004. The y-o-y construction output rose by 6.6% at constant prices. Employment in construction enterprises with 20+ employees rose by 6.6%. The average monthly wage reached CZK 22 973 and increased by 5.2% nominally and by 2.7% in real terms y-o-y. In these enterprises labour productivity per employee decreased by 1.2%; as a result unit wage costs rose by 6.5%. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased by 0.8 %, however the trend went up, it was lower than before.

January to November the y-o-y construction output was up by 3.8% in real terms. Labour productivity dropped by 0.2% in construction enterprises with 20+ employees; the average monthly wage increased by 4.3% nominally and by 2.5% in real terms. Unit wage costs enlarged by 4.5%.

In November 2005 planning and building control authorities granted 12.045 dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 30.4 billion, which was more by 4.9% y-o-y. The planning and building authorities permitted 2 912 dwellings to be constructed, which was less than in the equal period 2004.

External trade

In terms of y-o-y comparison, in November exports and imports reached historically record-breaking levels. Exports and imports were up by 7.8% and 7.0% (at current prices). Due to the appreciation of the Czech koruna against the euro and the depreciation against the US dollar, external trade grew faster in term of euros and slower in US dollars. The trade balance ended in a surplus of CZK 1.7 billion in November, which was by CZK 1.4 billion better result than in November 2004. Trade balance with EU member states was active by CZK 29.0 billion and with the non-EU states passive by CZK 27.3 billion. The improvement of the balance was most markedly contributed by a CZK 7.7 billion increase in surplus of trade in machinery and transport equipment; a CZK 6.1 billion decrease in mineral fuels had an unfavourable impact. According to preliminary data, m-o-m seasonally adjusted exports jumped by 2.9% and imports went up by 5.6%.

January to November, in terms of y-o-y comparison both exports and imports grew by 8.7% and 4.7%, respectively. The trade balance surplus reached CZK 45.8 billion, in comparison to the deficit amounted to CZK 16.8 billion had been attained in the equal period of the last year.


DECEMBER 2005

Consumer prices

In December, the m-o-m fall in consumer prices by 0.1% was an already third month continuing drop. Prices of goods went down by 0.2%, prices of services dropped by 0.1%. This decline in prices was caused by lower prices of automotive fuel (in December by 6.3%). Prices in food and non-alcoholic beverages raised the price level (especially seasonal prices of fruit, fresh vegetables and potatoes). Also the y-o-y increase in consumer prices decelerated to 2.2% (i. e. by 0.6 p. p. less than in December 2004). A dominant share in the higher price level was recorded for prices in housing (natural gas by 21.3%, water by 6.5%, electricity by 4.9%). Prices in hot water and water supply and refuse collection also went up. On the other hand, a long-term drop in prices of clothing and footwear, furnishing and household equipment brought about the decrease in the price level. In total, prices of goods went up by 1.3%, prices of services grew by 3.6%. The y-o-y average 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 1.9% in December.

An average price level in Q1 and Q2 was higher by 1.6% than in the equal periods of 2004, in Q3 by 1.9%, in Q4 by 2.4%.

According to data published by Eurostat the y-o-y increase of harmonised index of consumer prices reached 1.9% in the Czech Republic in December (according to a flash estimate, the HICP in Euro-zone was 2.2%).

Unemployment

The registered unemployment rate reached 8.9% at the end of December and slightly increased by 0.5 p. p. as against last month. In terms of y-o-y comparison, it decreased by 0.6 p.p. The females’ unemployment rate was 10.5 %; the unemployment rate of males was 7.6%. Labour offices registered 510.4 thousand job applicants at the end of December, which is approx. by 31.3 thousand people less as against last year. There were 481.1 thousand of unemployed job applicants being able to take a job immediately, which was less by 28.4 thousand of persons as against December 2004. Share in number of unemployed freshly graduated students to the total number of unemployed people went down to 7.6% (fall by 0.5 p. p. as against last month); however last year it reached 8.7%. Number of applicants per one job opportunity was 9.8 at the end of December; at the end of December 2004 it was 10.6.

In 2005 the quarterly average of registered unemployment rate gradually dropped from 9.64% in Q1 to 8.84% in Q2, to 8.81% in Q3 and arrived to 8.58% in Q4. In the course of the last year the unemployment rate did not reached the 2004 level.

Harmonised unemployment rate This estimation
- comprises integrated methodology in the EU (processed by Eurostat)
- is based on the quarterly level of unemployment rate (according to ILO) and selected surveys of labour forces (SSLF) proceeded in households
- is based on trends of the registered unemployment rate (Ministry of Labour and Social Affairs of the Czech Republic), then the monthly distribution is being carried out
has been calculated by Eurostat to obtain an international comparison, reached 7.8% in the Czech Republic in December and was by 0.4 p. p. lower than a year ago.


This press release was not edited for language.

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