Selected economy indicators - December 2006

In November the y-o-y growth of volume of industrial production was also supported by demand from abroad. Volume of construction output enlargement affected warm weather. Value of both exports and imports reached the record-breaking level; volume of exports enlarged faster than imports, the trade balance ended in surplus.

In December, the y-o-y level of consumer prices increased compared to November. The 2006 average inflation rate was 2.5%. The registered unemployment rate has seasonally been rising in December; however it was lower on a year before.
NOVEMBER 2006

Industry

In November the y-o-y volume industrial production reached 7.6%. In total, the most favourable development (contribution by 3.1 p.p.) was recorded in manufacturing of manufacture of means of transport and equipment (increase by 16.5%), next 2.3 p.p. in manufacturing of electrical and optical devices and appliances (increase by 13.1 %) and 1.4 p.p. in manufacturing and services of machinery and machinery equipment (increase by 23.8%). On the contrary, manufacturing of basic metals, metallurgical and metalworking products, manufacture of chemicals, drugs and chemical fibres, manufacturing of textile and textile products and clothing had a reverse effect. The m-o-m seasonally adjusted industrial production increased by 0.7%, the trend has concurrently been growing up by 0.7%.

In November sales in industry were higher by 8.8% (at constant prices) y-o-y, direct export sales increased by 11.8%. Industrial foreign-controlled enterprises increased its sales in industry by 16.7% and its direct export sales by 15.9%. Its share in total sales was 59.5% at current prices; in November 2005 it was 55.5%.

Number of employees in industry increased by 0.2%, (i. e. by 2.5 thousand people) y-o-y; labour productivity (sales per employee) was by 8.6% up. The y-o-y average monthly wage amounted to CZK 22 744 was up both nominally and really by 5.8% and 4.2 %, respectively. Labour productivity grew faster than increase of average wages; therefore unit wage costs decreased by 2.6%.

The y-o-y value of new orders in selected industrial branches sizeably increased by 14.6% in November. Value of new foreign orders enlarged by 16.9%.

In January to November, volume of industrial production remained at double-digit value (10.3%). In terms of real comparison sales in industry jumped by 10.8%, direct export sales were up by 11.7%. By increased number of employees in industry by 1.1% an average monthly wage enlarged nominally and really by 6.2% and 3.5%. Labour productivity went up by 9.6%, the y-o-y unit wage costs dropped by 3.1%.

Construction

In November the y-o-y volume of construction output was higher by 7.9% (at constant prices), volume of construction work enlarged in all types of construction. In construction enterprises (with 20+ employees), volume of new constructions, reconstructions and modernization in civil engineering (by 5.6 p. p.) and construction work abroad (1.6 p. p.) affected this growth most favourably. Number of employees in construction enterprises (with 20+ employees) dropped by 0.7% as against November 2005. The y-o-y average monthly wage reached CZK 24 207 and increased nominally by 5.3% and by 3.7 % in real terms. Labour productivity increased by 8.6% per employee, owing to unit wage costs decreased 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 0.6%.

In November, planning and building control authorities granted by 2.6% y-o-y less dwellings to be constructed. The approximate value of newly permitted constructions arrived at CZK 29.9 bn was by 1.5% lower on a year before. Planning and building authorities permitted 3 647 new dwellings, which is by 735 more than in November 2005.

In January to November according to preliminary data, the y-o-y volume of construction output enlarged by 5.9% in real terms. Labour productivity increased by 5.6% in enterprises with 20+ employees, number of employees grew by 0.3%, an average wage increased nominally by 6.8% and by 4.1% in real terms. Unit wage costs rose by 1.1%.

External trade

In November the y-o-y value of exports and imports enlarged by 16.1% and 14.2%, respectively (all at current prices), its volume was record-breaking in history of the Czech Republic. 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 surplus of CZK 6.4 bn, i. e. more by CZK 3.9 bn than a year ago. Trade balance with EU member states was active by CZK 36.1 bn, with non-EU states passive by CZK 29.7 bn. Trade in machinery and transport equipment, favourably influenced the y-o-y figures; trade balance deficit also decreased in trade in mineral fuels (for the second successive month), lower imports of both natural gas and petroleum in terms of value and in terms of volume. According to preliminary data, m-o-m seasonally adjusted exports increased by 5.2%, imports by 1.5%. Trends of both exports and imports came up.

In January to November y-o-y exports and imports expanded by 14.8 % and 14.7%, respectively. The y-o-y surplus of the trade balance amounted to CZK 50.5 bn was higher by CZK 7.8 bn on a year before.

DECEMBER 2006

Consumer prices

In December, m-o-m consumer prices level increased by 0.2%; prices of goods by 0.2%, prices of services by 0.1%. This drop was brought on increase in prices of foods and non-alcoholic drinks (fruit, potatoes, and fresh vegetable), prices of winter clothing and footwear, newspapers and magazines, beer in restaurants and prices in railway transport also went up. The y-o-y growth of consumer prices accelerated to 1.7% from 1.5% in November. The y-o-y growth in consumer prices affected markedly price changes in housing, water, energy and fuel (by 1.1 p.p.), then prices fluctuation of foods and non-alcoholic beverages (0.3 p.p.), hotels and restaurants (0.2 p.p.). Prices of goods increased by 0.9% y-o-y, prices of services by 3.1%.

Inflation rate, i. e. an increase in the average consumer price index for last 12 months (2006-year) related to the average CPI for the preceding 12 months (2005-year), amounted to 2.5% in December. In comparison to the 2005 inflation rate its value was by 0.6 p.p. higher. In total, prices of goods went up by 2.0% and prices of services by 3.5%. Market prices increased by 0.9% only, whilst granted prices by 7.8%.

In comparison to the equal period of the 2005-year, the average prices level was higher in Q1 by 2.8%, in Q2 coincidently in Q3 by 2.9% and in Q4 by 1.5%.

In December 2006, the y-o-y increase of harmonised index of consumer prices reached 1.5% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 1.9%).

Unemployment

In December 2006, the registered unemployment rate increased by 0.4 p. p., as against November. At the end of the month reached 7.7%; it decreased by 1.2 p. p. as against end of the year 2005. The females’ unemployment rate was 9.3%; the unemployment rate of males was 6.4%. Labour offices registered 448.5 thousand job applicants at the end of the 2006-year, which is approx. more by 16.0 thousand people as against November 2006. Share in number of unemployed freshly graduated students and juveniles to the number of unemployed people were down and arrived at 7.1% (decrease by 0.6 p. p. as against last month); last year reached 7.6%. Number of job opportunities went down; in December dropped to 93.4 thousand. Number of applicants per one job opportunity was 4.8 at the end of December; compared to December 2005, when it was 9.8 persons.

In the course of single quarters of the 2006-year the average registered unemployment rate dropped gradually from 9.0% in Q1 to 8.2% in Q2, then to 7.9% in Q3 and in Q4 to 7.5%.

Harmonised unemployment rate ¹ has been published by Eurostat to obtain an international comparison, reached 6.9% in the Czech Republic in September and was by 1.0 p. p. lower than a year ago.
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¹ 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


This press release was not edited for language.

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