Selected economy indicators - December 2008, January 2009

In December, the y-o-y industrial production volume continued dropping markedly, also volume of construction outputs lessened. Volume of both, exports and imports lessened sizeably, the trade balance ended in a deficit. In December were more two working days than a year ago.
In 2008 as against 2007 industrial production went up by 0.4%, construction output by 0.6%, the trade balance surplus lessened by CZK 18.5 bn to CZK 69.4 bn.
As a result of an increase in prices of housing, health, food the y-o-y prices level was higher in January than in December. The registered unemployment rate reached the record-breaking level in January, it was higher than at the end of January 2008.
  
DECEMBER 2008
 
Industry
 
In December, the y-o-y volume of industrial production was by 14.6% lower (after working days adjustment by 17.2%) results were affected by breaks in production due to drop in demand. This drop contributed manufacturing of means of transport and transport equipment by –4.2 p.p. (drop in branch performance by more than one fifth), further –2.8 p.p. manufacturing of electrical and optical appliances (drop in branch by 15.5%) and –2.7 p.p. manufacturing of basic metals, metallurgical and metalworking products (drop by 25.1%). There was none branch with the production growth. The m-o-m seasonally adjusted industrial production decreased by 0.5% as against November; the trends went up by 0.3%.
 
In December, sales in industry went down by 13.7% in terms of real comparison y-o-y (after working days adjustment by 14.1%), direct export sales by 15.1%. In industrial foreign-controlled enterprises total sales dropped by 16.1% and direct export sales 18.5%. Its share in total sales was 54.2% at current prices; in December 2007 it was 55.1%. 
 
The y-o-y average number of employees in industry went down by 4.7% (by 56.0 thousand people), in December their average monthly wage amounted to CZK 24 394 was up nominally by 9.8% and really by 6.0% on a year ago. Labour productivity ¹ in industry dropped by 8.1%.
 
In December, the y-o-y value of new orders in selected industrial branches decreased almost by one fourth, value of foreign orders dropped by 29.2%. 
 
In 2008, as against last year the volume of industrial production was by 0.4% higher, in individual quarters the y-o-y growth changed step by step from 5.6% in Q1 to 6.1% in Q2 and 4.2% in Q3 and in Q4 industrial production dropped by sizeable 13.2%. The year pace of growth was by 8.6 p.p. lower than in 2007. In terms of real comparison sales in industry rose by 0.1% and direct export sales by 2.2%. Number of employees in industry decreased by 0.1%, an average monthly wage increased nominally by 8.2% to CZK 22 780 and really by 1.9%. Labour productivity rose by 0.2% y-o-y.
 
Construction
 
In December, the y-o-y volume of construction output was by 2.6% lower (at constant prices), after working days adjustment dropped by 5.9%. In construction enterprises (with 20+ employees), the y-o-y decrease of construction work by 2.2% affected work abroad (by –2.7 p.p.) and new constructions, reconstruction and modernization in building construction (influence by –5.6 p.p.), whilst influence of structural engineering was positive (by 5.0 p.p.), also volume of work on repairs and maintenance enlarged (effect by 1.2 p.p.). In December, the m-o-m seasonally adjusted volume of construction output went down by 0.5%; in terms of real comparison, the trend dropped by 0.1%.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 0.7% as against December 2007. The y-o-y average monthly wage reached CZK 27 665 and increased by 17.5%, and by 13.4% went up in real terms. Labour productivity per employee decreased by 1.5% compared to December 2007 level.
 
In December, planning and building control authorities granted by 2.8% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 26.0 bn, and due to the high December 2007 base dropped by 28.6%. Planning and building authorities permitted 2 784 new dwellings, which was less almost by one third than in December 2007.
 
In 2008, the y-o-y volume of construction output was by 0.6% higher in terms of real comparison on a year ago. Whilst in Q1 and Q3 went up  (by 4.0% and 4.8%, respectively), in Q2 and Q4 dropped by 1.8% and 3.4%. Construction work carried out by enterprises´ own workers went up by 2.5% y-o-y.
 
Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.5% and labour productivity per employee increased in these enterprises by 0.6%. The average monthly wage increased nominally by 11.6% and really by 4.9%. Number of building permissions granted by planning and building control authorities went up by 4.1% y-o-y, the approximate value of permitted constructions increased by 9.3%.
 
External trade
 
In December, the y-o-y volume of both exports decreased by 13.4% and imports by 8.2% (all in current prices), the drop from previous two months continued and the December fall was the highest one since 1994. Due to an appreciation of the koruna against euro, external trade decrease was lower in euros than in koruna. The trade balance reached a deficit of CZK 11.8 bn, which was the highest one in December since 2003 and was by CZK 9.0 bn worse than a year ago. The trade balance with EU member states was active by CZK 22.9 bn and with non-EU countries passive by CZK 34.7 bn. The main contributors to the trade deficit were machinery and transport equipment, mineral fuels, raw materials and industrial consumer goods. On the other hand, the balance improved the trade in chemicals and related products, beverages, tobacco, semi- finished products and materials. After seasonal adjustment exports went down by 7.8% and imports went up by 0.1% m-o-m. Trend is demonstrating the drop in exports by 3.5% and in imports by 1.4%.
 
In  2008 exports dropped by 0.7% and imports grew only by 0.1% y-o-y. The trade balance surplus of CZK 69.4 bn was by CZK 18.5 bn lower, as against   2007 year. In individual quarters the surplus of CZK 34.3 bn dropped in Q1 to CZK 31.3 bn in Q2 and to CZK 20.0 bn in Q3. In Q4 the deficit of CZK -16.2 bn affected the yearlong worsening markedly as against last year. In Q2 and Q3 the balance improved y-o-y.
 
In accordance with preliminary recalculations of external trade results into the prices of previous year, both, exports and imports increased really by 4.5 % and 4.0 %, respectively y-o-y. The surplus amounted to CZK 103.8 bn was by CZK 15.9 bn higher on a year ago.
 
 
JANUARY 2009
 
Consumer prices
 
In January, m-o-m consumer prices level increased by 1.5%, prices of goods by 1.1% prices of services increased by 2.1%. The m-o-m gain was higher in January 2008 last time. The price increase decisively affected like last year administrative regulations, in which regulated prices increased in housing, (prices for electricity increased by 11.6%, heat and hot water by 3.2%, water supply and sewerage collection by 8.7%, rentals in dwellings with regulated rentals by 22.8%). Market prices increased only by 0.4%, prices of food and non-alcoholic beverages (by 1,5%) went up mostly fast. Prices in clothing and footwear, automotive fuel, mobile phones, telephone and telefax services decreased. In terms of the y-o-y comparison, the increase in consumer prices decelerated to 2.2% (i.e. by 1.4 p.p. less than in December 2008) and since March 2007 was the lowest one. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.7 p.p., prices growth by 10.6%), alcoholic drinks and tobacco (0.8 p.p., prices growth by 8.9%).  A downward effect on the consumer price level came from a price decrease in public transport (-1,2 p.p., drop in prices by 11.1%) In total, prices of goods jumped by 0.5% and prices of services by 4.9%.
 
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 5.9% in January and was by 0.4 p.p. lower than in December 2008. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 7.6%.
 
In January 2009, the y-o-y increase of average harmonized index of consumer prices reached 1.4% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.1%).
 
Unemployment
 
To the end of January 2009, the registered unemployment rate (according to Ministry of Labour and Social Affairs) increased markedly by 0.8 p.p. as against end of December 2008 and reached 6.8% to the end of the month (last time was higher in March 2007). The unemployment rate of females increased by 0.7 p.p. to 7.9%, in males by 1.0 p.p. to 6.0%. As against end of January 2008 the registered unemployment rate was by 0.7 p.p. higher. Labour offices registered 398.1 thousand job applicants, which was by 45.8 thousand higher as against last month, as against end of January 2007 increased by 33.5 thousand persons. The m-o-m number of unemployed freshly graduated students and adolescents slightly increased y-o-y, its share in the total number of unemployed people as against last month dropped by 0.7 p.p. to 6.3%, at the end of January 2008 reached 6.0%. Number of job opportunities decreased to 68.5 thousand, m-o-m; it was lower in February 2006 last time. Number of applicants per one job opportunity at the end of January was 5.8 compared to 2.5 applicants in January 2008.
 
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