Selected economy indicators - July 2004
Selected economic indicators
Publication Date: 10. 09. 2004
Product Code: r-1101-04
Industrial production has already kept up fast growth for four months ; in June was positively influenced by exports again. Stated volume of construction work has lessened for the second month y-o-y (as a compensation of former surprising increase in April). Trade balance reached surplus due to an extremely high growth rate of both imports and exports.
In July the consumer prices rose faster than they did during previous months. The registered unemployment rate passed across a 10 % limit in the first holiday month; such an increase in July was lower last time in 1996.
JUNE AND JANUARY- JUNE 2004
Industry
In June industrial production was keeping up its high grow rate for four months, the year-on-year industrial production index reached 115.1% (after working days adjustment it was 112.8%). The highest growth rate occurred in capital goods and intermediate goods. The highest increases in the industrial production were reported for the following CZ-NACE activities: manufacture of basic metals and fabricated metal products, other first processing of iron and steel and production of ferro-alloys, manufacture of electrical and optical equipment and manufacture of transport equipment. On the other hand decreases in the industrial production were recorded for mining and quarrying of energy producing materials, manufacture of food products, beverages and tobacco, and as traditionally, manufacture of leather and leather products. The m-o-m (e.g. compared to May 2004) industrial production increased by 1.7% after working days adjustment.
Sales in industry at constant prices were higher by 14.9% y-o-y (or 12.5% after working days adjustment). Direct export sales rose by 22.9% really and their share in industrial enterprises stood at almost one a half (current prices). Industrial foreign-controlled enterprises raised their sales by 21.5% at constant prices y-o-y, direct export sales by these enterprises increased by 25.3%. The decrease in number of employees in industry has continued slowly, in June their number decreased by 6.6 thousand, i.e. 0.6% y-o-y. Labour productivity (sales per employee) was 15.5% up y-o-y. In June the average monthly nominal wage amounted to CZK 17 583, which was up both nominally and really by 7.1% and 4.1% than in the last year. At a half growth of average monthly wage together with labour productivity increase resulted in decrease of unit wage costs by 7.3%.
During the first half-year 2004 industrial production has grown by 10.8% y-o-y (after working days adjustment it was 9.7%), in Q1 it was 9.0% up, in Q2 by 12.6% up. In the first half-year sales in industry rose by 11.2% (after working days adjustment it was by 10.0% up), direct exports sales rose by 15.9%. The average number of employees in the industry fell by 1.1%, average monthly nominal wage increased by 7.4%, really by 4.8%. Labour productivity was 12.4% up; as a result of it unit wage costs dropped by 4.4% y-o-y.
Construction
June was the second month when the y-o-y volume of construction output shrank by 2.9% (constant prices), after working days adjustment it was by 4.1%. After an extreme increase in volume of construction stated in April, a fall has been expected in the course of next couple of months. In accordance to the CZSO tentative calculations, the enormous April appreciation has been aligned yet. The fall in construction output manifested itself in the whole structure of construction work and in all sizes of construction companies in June, however it might differ across the structure. Number of employees (in construction enterprises with 20+ employees) rose by 4.4% y-o-y. The average monthly wage reached CZK 18 751 rising by 8.4% nominally and really by 5.3% y-o-y.
During the first half-year 2004, the construction output increased by 17.0% (after working days adjustment it was 16.5%) y-o-y ; in Q1 by 16.1%, in Q2 by 17.5%. In enterprises with 20+ employees labour productivity increased by 13.0% y-o-y, average monthly wage rose by 7.5% nominally and 4.9% really. Unit wage costs were 4.9% down, compared to the first half-year 2003.
External trade
In June a growth rate of external trade kept on growing, effect of both new administrative and economic factors after joining the EU single market appeared. Current prices exports and imports were 33.6% and 28.8% up y-o-y . Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, external trade grew faster in terms of US dollars and was slightly slower in terms of euros. High rate of exports positively affected trade balance results. Trade surplus stood at CZK 0.9 bn (in June 2003 it was deficit of CZK 3.4 bn). In trade with EU member states the trade surplus stood at CZK 17.7 bn, in trade with non-EU states the deficit of CZK was 16.8 bn. The balance improved most in trade in parts and accessories of motor vehicles, telecommunication equipment, computers and personal cars. On the other hand, the balance in computer parts, electrical machinery and appliances, mineral fuels and chemical products. Both, exports and imports seasonally adjusted decreased by 3.7% and 3.5% m-o-m , respectively.
During the first half-year exports and imports increased by 21.6% and 20.2% respectively. The trade deficit reached CZK 11.7 bn; compared to the equivalent period of the last year was by CZK 5.7 bn down. At the end of Q1 both exports and imports came up by 12.3% and 11.2%, respectively; in Q2 it was by 30.7% and 28.8%, respectively. The deficit reached CZK of 0.9 bn (in Q1) and 10.8 bn (in Q2). Compared to the last year, in Q1 and Q2 the deficit reduced by CZK 3.3 bn, and 2.4 bn, respectively.
JULY 2004
Consumer prices
In July, consumer prices rate accelerated. Price level increased by 0.4% m-o-m , i.e. twice compared to June (increase by 0.2%). In total prices of goods went down by 0.5%, while prices of services rose by 1.6%. The increase in price level was affected by higher prices in recreational and cultural services (rise in seasonal prices for holiday stays reached 17.5%), housing (costs of cooperative dwellings and owned flats) and tobacco products. Fall in prices of food and non-alcoholic beverages had a reducing effect on prices (mainly potatoes, fresh vegetable and fruit), prices of clothing and footwear and prices of automotive fuels. In terms of y-o-y comparison, consumer prices grew by 3.2%, which was caused mainly by the rise in prices for food, non-alcoholic beverages, alcoholic beverages, tobacco, public catering, prices of food in restaurants and canteens, prices for post and telecommunication services, financial services and personal care services. In total prices for goods rose by 1.6%, prices for services for 5.9%. 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 amounted to 1.7% in July.
Unemployment
For the first time Ministry of Labour and Social Affairs of the Czech Republic published the registered unemployment rate according to the new methodology, which is keeping with ways of calculation in EU-members states (ILO methods used in Eurostat). At the end of July unemployment reached 9.2% in accordance to. Labour offices registered 495.4 thousand of unemployed job applicants being able to take a job. According to the former methodology, the registered unemployment rate was 10.1%. Unemployment development negatively affected lots of freshly graduated students, however in some measure lesser than in the course of last years. Graduated students and juveniles have had share by 8.4% in unemployment, while in the equivalent period of the last year it was 10.7%. Number of job possibilities increased almost by 2.0 thousand (compared to the end of July 2003) and was 45.7 thousand. Number of applicants per one job opportunity was 11.6 compared to the last year when it was 11.9.
This press release was not edited for language.