Selected economy indicators - February, March 2008

The y-o-y growth of industrial production volume expanded fast in January, volume of construction remained at a high level of January 2007. Growth volume of exports rose faster than imports, the trade balance ended in the record-breaking January surplus.
The February consumer prices level was higher than in January, the y-o-y prices growth remained at the same level like in January. The registered unemployment rate decreased in February, it was sizeably lower than by the end of February 2007. 
JANUARY 2007
 
Industry
 
In January, the y-o-y volume of industrial production was by 9.3% higher. In total, manufacturing of electrical and optical appliances supported this growth with 3.2 p.p. (growth in the branch by 25.0%), by next 2.6 p.p. manufacturing of transportation and equipment (growth in the branch by 11.5%), and by 1.1 p.p. services of machinery and equipment (growth by 17.2%). A drop in production of textiles, textile production and clothing, manufacturing of wood and wood products was recorded. The seasonally adjusted industrial production increased by 2.3% in comparison to December level; the trends have been growing up by 0.7%.
 
In January, sales in industry were higher by 8.5% in terms of real comparison y-o-y, direct export sales increased by 10.3%. Industrial foreign-controlled enterprises increased its sales in industry by 8.4% and direct export sales by 8.1%. Its share in total sales was 59.3% at current prices; in January 2007 it was 60.4%. 
 
An average number of employees in industry increased by 3.1%, (i. e. by 36.2 thousand people), their average monthly wage amounted to CZK 22 367 in January was up nominally by 12.2%, really by 4.4%. Such a high growth was affected by extra payments and bonuses. Labour productivity in industry was up by 4.5%.
 
In January, the y-o-y value of new orders in selected industrial branches increased by more than 1.1% , value of foreign orders dropped by 4.1%. 
 
Construction
 
In January, the y-o-y volume of construction output was by 1.0% higher (at constant prices). The lower gain anticipated was affected by the high January 2007 basis, when construction output expanded by 29.1% y-o-y, as a result of a warm winter. In construction enterprises (with 20+ employees) volume construction work lessened in all kinds of inland construction; on the other hand volume of construction work abroad increased twofold and affected increase of total volume of construction output by 2.2 p.p. The seasonally adjusted construction outputs were really by 0.5% lower m-o-m in January 2008, the trends were up by 0.3%.
 
Number of employees ¹ in construction enterprises (with 20+ employees) went up by 1.0% as against January 2007. The y-o-y average monthly wage reached CZK 21 837 and increased by 12.3%, and by 4.5% in real terms. Such a high growth was affected by extra payments and bonuses. Labour productivity per employee decreased by 0.2% compared to January 2007 level.
 
In January, planning and building control authorities granted by 6.2% y-o-y less construction permissions to be constructed. The approximate value of permitted constructions was affected by the value growth of non-residential buildings and arrived at CZK 28.4 bn; in comparison to January 2007 jumped by 43.7%. Planning and building authorities permitted 3 381 new dwellings, which was more almost by one third than in January 2007.
 
External trade
 
In January, the y-o-y value of exports enlarged by 11.0%, imports by 10.3% (both in current prices). Due to the appreciation of the Czech koruna against the EUR and especially against the USD, exports and imports rose faster in terms of dollars and euros than in Czech koruna. The trade balance ended in a surplus of CZK 12.2. bn, which was by CZK 2.4 bn higher on a year ago. A positive balance is typical for the January since 2004; this year was the highest one. The trade balance with EU 27 member states was active by CZK 49.5 bn, with non-EU 27 states passive by CZK 37.3 bn. Increase in trade of machines and machinery products and means of transport, had a positive effect on trade balance, worsening especially in trade of mineral fuels had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted exports enlarged by 6.4%, imports by 12.0%. The trend component rose by 2.2% in exports and 0.7% in imports.
 
 
FEBRUARY 2008
 
Consumer prices
 
In February, m-o-m consumer prices level increased by 0.3%; prices of goods increased by 0.2%, prices of services by 1.0%. The rise in February affected an increase of prices for housing (prices for water supply went up by 4.2%, sewerage collection by 5.0%), in recreation and culture  (prices increase of package holidays by 3.1%) and in restaurant and hotels (prices rose in school canteens by 1.5%, in restaurants by 0.9%). Prices of food and non-alcoholic beverages reduced by 0.5%. The y-o-y growth of consumer prices remained at 7.5%. The y-o-y development of prices level increase influenced most prices of housing, water, energy and fuel (2.4 p.p., prices growth by 9.4%), food and non-alcoholic drinks (1.9 p.p., prices growth by 11.3%), alcoholic drinks and tobacco (1.2 p.p., prices growth by 13.8%) and public transport (0.8 p.p., prices growth by 7.3%). Prices in health care delivery increased by one third. In total, prices of goods jumped by 7.4% and prices in services by 7.7%.
 
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 3.9% in February and was by 0.5 p.p. higher than in January.
 
In February 2008, the y-o-y increase of average harmonised index of consumer prices reached 7.6% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.2%).
 
Unemployment
 
The registered unemployment rate in February 2008 decreased by 0.2 p.p. as against January 2008 and arrived to 5.9% to the end of February. The females’ unemployment rate as well as the unemployment rate of males decreased to 7.2% and 5.0%, respectively. As against end of February 2007 the registered unemployment rate was by 1.8 p.p. lower. Labour offices registered 355.0 thousand job applicants at the end of February and was by 10.5 thousand lower than a month ago, as against end of February 2007 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 increased by 0.1 p.p. to 6.1%, at the end of February 2007 reached 6.5%. Number of job opportunities jumped to the record-breaking number 150.3 thousand. Number of applicants per one job opportunity at the end of February was 2.4; compared to February 2007, when it was 4.3 persons.
 
This press release was not edited for language.
 

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¹ Employees working in construction enterprises through personnel agencies are not involved into average registration number of employees

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