Selected economy indicators - July 2005

JUNE 2005

Industry

In June the y-o-y industrial production index somewhat slowed down and reached 103.7 as against equal period of the last year owing to decreases in manufacture of basic metals and manufacture of fabricated metal products and the high reference basis in June 2004. Favourable increases in industrial production were observed in manufacture of transport and transport equipment, manufacture and servicing of machinery and equipment, manufacture of coke and petrol products. Decreases were observed in metallurgy, also in manufacture of textile and clothing products, manufacturing of wood and wood products. The m-o-m seasonally adjusted industrial production increased by 1.1%, the growth rate trend accelerated.

In June sales in industry were higher by 8.5% y-o-y (at constant prices of year 2000 as the reference basis), direct export sales increased by 9.5%. Industrial foreign-controlled enterprises increased its sales in industry by 15.1% in real terms; direct export sales were up by 11.3%. Number of employees in industry increased by 0.7% (i. e. by 8.0 thousand people) compared to June 2004, labour productivity (sales per employee) was 7.7% up. The y-o-y average monthly wage amounted to CZK 18 500 was up both nominally and really by 5.0% and 3.1%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 2.5%.

The y-o-y volume of new orders in selected industrial branches increased almost by 14.3% in June, new foreign orders jumped by 20.9%.

In the first half-year industrial production enlarged by 4.2% (in Q1 by 4.0%, in Q2 by 4.5%), compared to the equal period of the last year. Sales in industry rose by 7.0%, direct export sales were up by 10.9%. An average monthly nominal wage increased by 4.2% nominally and by 2.6% really, at employment growth in industry by 0.5%. As a result labour productivity grew by 6.4%, y-o-y unit wage costs dropped by 2.1%.


Construction

In June the y-o-y construction output was affected by pre-invoicing of construction work (i. e. before May 2004), as well as in preceding months. Effective as of 1 May 2004 construction work was transferred to the higher VAT category. Due to the lower reference basis construction outputs jumped by 19% (at constant prices) in June. According to model calculations by the CZSO, construction outputs rose by 1.5%. Number of employees in construction enterprises (with 20+ employees) rose by 4.5% in June, compared to the equal period of the last year. The average monthly wage reached CZK 19 475 and increased year-on-year by 3.1% nominally and by 1.3% in real terms. Labour productivity increased by 13.4%. The m-o-m seasonally adjusted construction outputs increased by 0.4 % in real terms the growth trend kept growing.
The above-mentioned facts also affected results in the first half-year when the total construction output lessened by 1.2% in real terms than a year ago, in Q1 did not arrived to the last year level by 3.2% and in Q2 persisting unaltered. In construction enterprises with 20+ employees labour productivity dropped by 4.4%, the average monthly wage increased by 3.5% nominally and by 1.9% in real terms.

In June 2005 planning and building control authorities permitted 13.7 thousand dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 30.3 bn.

External trade

In terms of y-o-y comparison, in June both exports and imports increased by 4.7% and 0.4% (at current prices). The trade balance ended in a surplus of CZK 7.5 bn thas has been the highest June surplus ever recorded in the history of the Czech Republic (i. e. by CZK 6.7 bn more than in June 2004). Trade balance with EU member states reached a surplus of CZK 23.8 bn, trade balance with non-EU member states ended in a deficit of CZK 16.3 bn. A favourable development was recorded in trade in machinery and transport equipment (marked improvement of trade in computers), on the other hand deficit worsened in trade in mineral fuels (affected by higher imports of crude petroleum).

According to preliminary data, m-o-m seasonally adjusted exports jumped by 2.9% and imports increased by 4.4%. The growth rate trend of both, exports and imports has been growing up since April 2005.

In the first half-year, in terms of y-o-y comparison both exports and imports jumped by 8.6% and 3.1%. The trade balance surplus reached CZK 38.0 bn, which was by CZK 7.8 bn more in comparison to the equal period of the last year. In Q1 exports went up by 16.6%, imports by 11.8%, in Q2 imports grew up by 2.1% and concurrently imports dropped by 3.8%. The Q1 trade balance surplus reached CZK 19.4 bn, in Q2 CZK 18.6 bn.


JULY 2005

Consumer prices

In July, m-o-m consumer prices level increased by 0.3%; (prices of goods dropped by 0.4% and prices of services went up by 1.3%), which was caused by higher seasonal prices of package holidays by 16.5% and the rise in prices of automotive fuel by 4.1%. On the other hand prices of food and non-alcoholic beverages (especially potatoes, fruit and fresh vegetables) fall down that had a reducing effect on prices; it was caused primarily by lower prices of food and non-alcoholic beverages, as against July 2004. The y-o-y growth in consumer prices slackened to 1.7%. On the contrary, prices of automotive fuel, prices of transport services and housing were higher than last year. In terms of y-o-y comparison, consumer prices increased by 0.7%, prices of services were higher by 3.4%. 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 2.2% in July.

In July the y-o-y increase of harmonised index of consumer prices reached 1.4% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 2.2%).

Unemployment

The registered unemployment rate according to the new methodology reached 8.8% at the end of July and rose by 0.2 p. p. as against last month. In terms of y-o-y comparison it decreased by 0.4 p. p. The females’ unemployment rate was 10.9%; the unemployment rate of males was 7.2%. According to the former methodology, the unemployment rate was 9.5% at the end of June, which was by 0.6 percentage points less y-o-y. Labour offices registered 500.3 thousand job applicants at the end of July, which is by 31.8 thousand people less than in the equal period of the last year and by 10.6 thousand people more than last month. There were 476.5 thousand of unemployed job applicants being able to take a job immediately. Share in number of unemployed freshly graduated students to the total number of unemployed people climbed to 6.3% (a year ago it was 8.4%). Number of applicants per one job opportunity was 8.8 at the end of July; at the end of July 2004 it was 11.6.


Harmonised unemployment rate ¹ has been calculated by Eurostat to obtain an international comparison, reached 7.5% in the Czech Republic in July and was by 0.6 p. p. lower than a year ago.

¹⁾ This estimation
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


This press release was not edited for language.

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