Selected economy indicators - December 2007

 
Growth of industrial production volume has constantly been expanding for five year and a quarter. In November, the volume of construction output rose due to structural engineering. By decelerated growth volume of exports rose faster than imports, the trade balance ended in the highest November surplus. In November was more one working day, as against last year.
Due to further increase in prices of foods, the December consumer prices level was higher than in November, the y-o-y prices growth was the highest one since August 2001. The 2007 average inflation rate was 2.8%. The registered unemployment rate increased seasonally in December; however it was lower on a year ago. 
NOVEMBER 2007
 
Industry
 
In November, the y-o-y volume of industrial production was 6.7% (after working days adjustment the gain was 4.9%); industrial production has constantly been growing for 63 months. In total, manufacturing of means of transport and equipment supported this growth with 4.2 p.p. (growth in the branch by 21.2%), by next 2.1 p.p. manufacturing of electrical and optical appliances (growth in the branch by 11.2%), and by 0.8 p.p. manufacturing and servicing of machines and equipment (growth by 11.8%). The most negative impact (1.0 p.p.) had a drop in production of coke, refining of petroleum by more than a fourth (planned outage time of processing equipment). Manufacturing of chemicals, drugs, chemical fibres, food products and beverages, tobacco products, also sizeably reduced. The seasonally adjusted industrial production remained on the October level; the trends have been growing up by 0.5%.
 
In November, sales in industry were higher by 7.6% in terms of real comparison y-o-y (after working days adjustment by 5.9%), direct export sales increased by 11.0%. Industrial foreign-controlled enterprises increased its sales in industry by 10.4% and direct export sales by 11.9%. Its share in total sales was 60.5% at current prices; in November 2006 it was 59.4%. 
 
An average number of employees ¹ in industry increased by 1.2%, (i. e. by 14.1 thousand people), their average monthly wage amounted to CZK 24 362 in November was up both nominally and really by 6.2% and 1.1%, respectively, higher than a year ago. Labour productivity in industry was up by 5.5%.
 
In November, the y-o-y value of new orders in selected industrial branches enlarged by more than 4.0% , value of new foreign orders enlarged by 3.3%. 
 
In January to November, as against the equal period of 2006, the volume of industrial production enlarged by 8.7%. In terms of real comparison, sales in industry enlarged by 9.9%, direct export sales jumped by 13.9%. Number of employees in industry increased by 1.9%, an average monthly wage increased nominally by 7.7% and really by 5.0%. The y-o-y labour productivity grew up by 7.1%.
 
Construction
 
In November, the y-o-y volume of construction output was by 7.0% higher (at constant prices), after working days adjustment by 5.4%. In construction enterprises (with 20+ employees) construction work affected the y-o-y gain by 6.7% new constructions, reconstruction, modernization in structural engineering (effect by 3.9 p.p.) and in building construction (0.2 p.p.), work on services and maintenance (1.9 p.p.) and work abroad (1.0 p. p.). On the contrary, other work had a negative effect (by -0.3 p.p.). The seasonally adjusted construction outputs were really by 0.9% higher m-o-m in November, the trends were up by 0.7% m-o-m.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 2.2% as against November 2006. The y-o-y average monthly wage reached CZK 25 407 and increased by 5.1% and by 0.1% in real terms. Labour productivity per employee increased by 9.1% compared to November 2006 level.
 
In November, planning and building control authorities granted by 13.7% y-o-y less construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 30.1 bn and compared to November 2006 increased by 0.6%. Planning and building authorities permitted 2 873 new dwellings, which was less by 21.2% than in November 2006.
 
In January to November construction output was in real terms by 6.8% higher than a year ago. Number of employees in construction enterprises (with 20 + employees) dropped by 1.5%; so labour productivity per employee increased in such enterprises by 7.5%. An average monthly wage increased nominally and really by 8.4% and 5.7%, respectively. Whilst planning and building control authorities granted less by 12.4% y-o-y, orientation value of permitted dwellings reduced only by 1.5%.
 
External trade
 
In November, the y-o-y value of exports enlarged by 11.0%, imports by 8.2% (both in current prices), volume of exports expanded the lowest way since August 2006 and volume of imports since April 2006. 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 record-breaking November surplus of CZK 11.3 bn, which was by CZK 6.4 bn more than a year ago. The trade balance with EU 27 member states was active by CZK 43.7 bn, with non-EU 27 states passive by CZK 32.4 bn. Increase in trade of machines and machinery products and means of transport, semi-finished products, materials and raw materials had a positive effect on trade balance. On the other hand worsening in trade of chemical products and mineral fuels had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted exports did not change, imports dropped by 2.2%. Trends of both, exports and imports increased by 0.2% and 0.6%, respectively.
 
In January to November, volume of both exports and imports enlarged by 15.8% and 13.9% y-o-y. The y-o-y trade balance surplus amounted to CZK 87.2 bn sustained approximately twofold level as against 2006 year, in the course of 11 months of 2007-year was by CZK 43.7 bn higher on a year ago.
 
 
DECEMBER 2007
 
Consumer prices
 
In November, m-o-m consumer prices level increased by 0.5 %; prices of goods increased by 0.6%, prices of services by 0.3%. Except September, the m-o-m gains were typical for the whole 2007-year. The rise in December was affected by an increase in prices of food and non-alcoholic beverages by 1.8% (for example process of fruit increased by 8.0%, bread by 5.6%, eggs by 4.4% and edible oils by 4.0%). Due to an increase of fare in railway transport, prices in public transport, as well as prices in hotels and accommodation services also jumped by over-average paces. The y-o-y growth of consumer prices accelerated to 5.4% (by 0.4 p.p. more than in November 2007), and was the highest since August 2001. The y-o-y development of prices level increase influenced most prices of foods and non-alcoholic drinks (1.8 p. p.) alcoholic drinks, tobacco and dwellings, water, energy, fuel (identically 1.4 p. p.). Prices of foods and non-alcoholic drinks jumped by 11.2%, prices of alcoholic drinks and tobacco by 16.6%. In total, prices of goods increased by 6.5%, prices if services by 3.6%.
 
Inflation rate, i. e. an increase in the average consumer price index for last 12 months (2007-year) related to the average CPI for the preceding 12 months (2006-year), reached 2.8% in December. As against inflation rate in 2006 its value was by 0.3 p. p. higher. In total, prices of goods rose by 2.7%, prices of services by 3.1%. Market prices increased by 1.7% only, whilst administratively controlled prices by 8.8%.
 
In comparison to the equal period of the last 2006-year an average price level was higher by 1.5% in Q1, in Q2 and Q3 gradually by 2.4% and 2.5% and in Q4 by 4.8%.
 
In December 2007, the y-o-y increase of harmonised index of consumer prices reached 5.5% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.1%).
 
Unemployment
 
The registered unemployment rate in December 2007 increased by 0.4 p.p. as against November and to the end of the month arrived to 6.0%. As against end 2006-year was by 1.7 p. p. lower. The females’ unemployment rate rose slower (by 0.3 p.p.) to 7.4%, the unemployment rate of males only by 0.4 p.p. to 4.9%. Labour offices registered 354.9 thousand job applicants at the end of December. As against end of December 2006 number of job applicants reduced by more than one fifth. As against previous month, number of unemployed freshly graduated students and adolescents reduced, its share on the total number of unemployed people dropped by 0.5 p.p. to 6.4%, at the end of 2006-year reached 7.1%. Number of job opportunities dropped to 141.1 thousands m-o-m. Number of applicants per one job opportunity was 2.5 at the end of December; compared to December 2006, when it was 4.8 persons.
 
In the course of individual quarters, an average registered unemployment rate dropped gradually from 7.7% in Q1 to 6.7% in Q2; 6.3% in Q3 to 5.8% in Q4.
 
This press release was not edited for language.

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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