Selected economy indicators - January 2005
Selected economy indicators
Publication Date: 14. 03. 2005
Product Code: r-1101-05
DECEMBER AND YEAR 2004
Industry
In December the y-o-y industrial production index reached 108.3% or 103.9% after working days adjustment (there were two more working days in December than in 2003). Industrial production raised most in the production of capital goods (by 18.8%) and intermediate goods (by 7.9%). The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture of transport equipment, manufacture of rubber and plastic products and manufacture of basic metals and fabricated metal products. Decreases in the industrial production were recorded for mining and quarrying of energy producing materials, manufacture of leather and leather products and manufacture of textile and textile products. The m-o-m seasonally adjusted industrial production (compared to November 2004) was down by 1.0 %.
Sales in industry at constant prices were higher by 8.6% y-o-y (or 4.0% after working days adjustment). Direct export sales have traditionally been rising significantly faster, in December increased by 18.4% in real terms and its share in total sales stood at more than 45%. Industrial foreign-controlled enterprises evenly reach higher dynamics of growing its sales in industry, in the given month it was by 18.1% higher as against the corresponding period of 2003, its share of direct export sales in total export sales stood almost at three fourths. Number of employees in industry slightly dropped by 0.3%; labour productivity (sales per employee) was 8.9% up. In December the average monthly nominal wage amounted to CZK 18 870, which was up both nominally and really by 4.6% and 1.8% than last year. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs dropped by 3.9%.
In 2004 compared to 2003 the y-o-y industrial production grew by 9.9% (after working days adjustment it was 9.5%). The y-o-y industrial production was getting increased over the quarters as follows: up by 9.0%, 12.6%, 8.7% and 9.1%. Sales in industry rose by 9.8% in 2004; direct export sales were up by 17.0%. The average number of employees in industry fell by 0.5%, due to the average monthly nominal wage increased by 6.9%, really by 4.0%. Labour productivity was 10.4% up; consequently the y-o-y unit wage costs dropped by 3.2%.
Construction
In December paces of growth rate of construction outputs were lower than in previous month. The y-o-y construction outputs increased only by 1.3% (at constant prices), after working days adjustment (they were more two working days in December) dropped by 1,3%. The ugly weather in December that affected mainly outdoor construction work (in comparison to December 2003) caused this slowdown. Volume of construction work on repairs and maintenance lessened, whereas it increased in civil engineering and new constructions. Number of employees in construction enterprises with 20+ employees rose by 4.2% y-o-y. The average monthly wage reached CZK 20 224 and increased year-on-year by 1.5% nominally and dropped by 1.3% in real terms. Labour productivity decreased by 2.8% per employee; in comparison to wages increase resulted in increase of unit wage costs by 4.4%. The m-o-m (i. e. as against November 2004) seasonally adjusted construction outputs lessened by 2.0% in real terms.
In the course of 2004 the y-o-y construction outputs increased by 9.7% in real terms, it was fluctuating in the course of individual quarters. In Q1 it increased by 16.1% and in Q2 by 16.5%, in Q3 it slowed down and reached 4.5% and in Q4 arrived at 5.0% y-o-y. The annual growth of construction was the highest since 1993. In enterprises with 20+ employees labour productivity increased by 5.3 % in 2004, the average monthly wage rose by 6.2% nominally and 3.3% really. The unit wage costs slightly increased by 0.9%.
External trade
All-time low deficit of external trade was caused by the y-o-y high growth of exports by 18.5% in December on the one hand, on the other by the slight growth of imports by 6.4% (at current prices). It arrived at CZK 7.6 bn only what was by CZK 12.3 bn less than a year ago and is representing the most favourable trade balance over the last ten years. Trade balance with EU member states reached a surplus of CZK 10.9 bn, trade balance with non-EU states ended in a deficit of CZK 18.5 bn. As far as the structure of goods concerns, trade balance improved in machinery and transport equipment, semi-finished products and materials, chemicals and related products; on the other hand the deficit worsened in trade in miscellaneous manufactured articles and in mineral fuels. The m-o-m seasonally adjusted exports and imports dropped by 5.5% and 8.9%, respectively.
In 2004 the y-o-y exports rose by 23.8%, imports were up by 19.2%. Trade gap totalling CZK 20.6 bn was CZK 49.2 bn down on the year 2003 and was the lowest one since 1993. Trade balance ended in gap over the quarters (surplus +): CZK +0.5 bn; CZK –9.7 bn; CZK –4.9 bn and CZK –6.5 bn. After the accession of the Czech Republic to the EU were registered not only dynamics of growing both exports and imports and a significant decrease of the y-o-y deficit (in Q3 by CZK 13.3 bn and in Q4 by CZK 27.2 bn), but also changes of territorial orientation (slightly lower shear of highly developed market economies in total exports and concurrently strengthening its position at total exports) and changes in structure of goods (bigger take in sophisticated products in exports, mainly machinery and transport equipment).
JANUARY 2005
Consumer prices
In January the m-o-m consumer prices level increased by 0.7% (i.e. compared to December 2004); administratively regulated prices were up by + 0.4 percentage points and market prices by + 0.3 percentage points. Increase in the price level was influenced particularly by a rise in prices in housing and recreation and culture, drop in prices in clothing and footwear and transport had reducing effect. The y-o-y increase of prices slowed down significantly by 1.7% (it was by 1.1 percentage points lower than in December 2004). The slowdown in rise of prices occurred in most prices in goods and services of the consumer basket. The fall was recorded for prices of telecommunication services, food and non-alcoholic beverages (lower prices of fresh vegetables, potatoes, bread and cereals) and prices of transport (drop in prices of automotive fuels). In housing price growth slowed down. In total, prices of goods went up by 0.2% and prices of services by 4.3% (compared to January 2004). 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 2.8% in January (the same as in December).
Unemployment
Harmonised unemployment rate 1 has been calculated by Eurostat to obtain an international comparison, reached 8.6% in the Czech Republic in January and compared to January 2004 did not alter.
Since July 2004 Ministry of Labour and Social Affairs of the Czech Republic has been publishing the registered unemployment rate according to the new methodology . In accordance with it unemployment reached 9.8% at the end of January, which was by 0.3 percentage points more m-o-m and by 0.1 percentage points more y-o-y. The females’ unemployment rate was 11.1%, the unemployment rate of males was 8.8%.
According to the former methodology , the unemployment rate was 10.7% at the end of January, which was by 0.4 percentage points more m-o-m, but by 0.1 percentage points less y-o-y.
Number of job applicants arrived at 561.7 thousand at the end of January, which is by 20 thousand people more than last month. Labour offices registered 527.0 thousand of unemployed job applicants being able to take a job. Share in number of unemployed freshly graduated students dropped to 8.1% (in December 2004 it was 8.7%, last year 9.6%). Number of applicants per one job opportunity was 10.8 at the end of January; at the end of January 2004 it was 13.7.
This press release was not edited for language.
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1 It is estimation that:
- 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