Selected economy indicators - July 2007

The y-o-y volume of industrial production slowed down also in June, volume of construction output lessened. Growth paces of exports outstripped that of imports again, trade balance ended in a surplus as well as in other months of this year.
In July, the y-o-y level of consumer prices was higher compared to June, the y-o-y growth of prices slightly decelerated. The registered unemployment rate has been increasing in the first month of holidays similarly in all previous years. 

JUNE 2007
 
Industry

In June, the y-o-y volume of industrial production enlarged by 6.9%, after working days adjustment by 8.8% (in June was more one working day than the last year). In total, manufacturing of means of transport and equipment supported this growth by 3.1 p. p. (growth in the branch by 14.9%), manufacturing of electrical and optical appliances supported this growth with 1.6 p. p. (growth in the branch by 12.6%), by next 0.8 p. p. manufacturing and servicing of machinery and equipment (growth by 12.2%). Drop in production of manufacturing of basic metals and metallurgical products, manufacturing of electricity, gas and water and manufacturing of food products, beverages and tobacco products had the most negative impact. The m-o-m seasonally adjusted industrial production increased by 1.0%; the trend has been growing up by 0.6%.
 
In June, sales in industry were higher by 7.9% in terms of real comparison y-o-y, after working days adjustment by 9.7%. Direct export sales increased by 11.5%. Industrial foreign-controlled enterprises increased its sales in industry by 12.2% and direct export sales by 13.9%. Its share in total sales was 61.2% at current prices; in June 2006 it was 59.2%. 
 
Number of employees ¹ in industry increased by 1.9%, (i. e. by 22.0 thousand people) y-o-y; their y-o-y average monthly wage amounted to CZK 21 201 in June was up both nominally and really by 6.5% and 3.9 %, respectively. Labour productivity was up by 5.3%.
 
The y-o-y volume of new orders in selected industrial branches enlarged, its y-o-y value increased by 8.5% in June, value of new foreign orders enlarged by 9.2%. 
 
In Q1, as against the equal period of 2006, the volume of industrial production enlarged by 10.4% (in Q1 by 11.6% and in Q2 by 9.3%). Sales in industry enlarged by 11.4% in real terms, direct export sales jumped by 16.5 %. Number of employees in industry increased by 2.3%, an average monthly wage increased nominally by 7.7% and really by 5.6%.  Labour productivity grew by 8.2% y-o-y.
 
Construction

In June, the y-o-y volume of construction output was lower by 4.4% in terms of real comparison, after working days adjustment by 3.0%. Last time the construction output decreased in April last year. The slowdown of paces to previous months proved in the whole structure of construction outputs of the last months except construction work abroad. In construction enterprises (with 20+ employees) construction work contributed to the drop in construction work by 4.7% y-o-y new construction, reconstruction, modernization in structural engineering (effect of - 3.5 p.p.), work on services and maintenance  (-2.2 p.p.) and other work (-0.3%). Work in abroad increased by more than by 50% and contributed by 1.2 p. p.; also an impact of building construction on new construction (by 0.1) had imperceptibly positive effect. The seasonally adjusted construction outputs were by 0.2% lower m-o-m in June, the trends dropped by 0.5% m-o-m.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 2.2% as against June 2006. The y-o-y average monthly wage reached CZK 21 124 and increased by 3.4% and by 0.9% in real terms. Labour productivity per employee decreased by 2.6% and unit wage costs increased by 6.2%.
 
In June, planning and building control authorities granted by 21.5% y-o-y less construction permissions to be constructed. The approximate value of newly permitted constructions arrived at CZK 28.3 bn was more by June last year by 7.3%. Permission of big trade and administrative centres contributed to the average approximate value. Planning and building authorities permitted 3 369 new dwellings, which was by 9.0% less than in June 2006.
 
In Q1 construction output was in real terms by 12.7% higher than a year ago, in Q1 construction output increased by record-breaking 28.9%, while in Q2 only by 3.7%. Extraordinarily favourable meteorological conditions during first months of this year markedly affected the performance in construction. Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.9%; so labour productivity per employee increased in such enterprises by 12.5%. An average monthly wage increased nominally and really by 10.1% and 7.9%, respectively. Planning and building control authorities granted less by 8.4% y-o-y, orientation value of permitted dwellings was by 1.0% higher.
 
External trade

In June, the y-o-y value of both exports and imports enlarged by 14.5% a 14.0%, respectively (all at current prices). Due to the appreciation of the koruna against USD and its depreciation against euros, exports and imports rose faster in terms of dollars than euros. The trade balance ended in a surplus of CZK 9.3 bn, which represents the y-o-y improvement by CZK 1.9 bn. Since 2004 the June surplus has been a characteristic trait of the June 2004. Trade balance with EU 27 member states was active by CZK 36.1 bn, with non-EU 27 states passive by CZK 26.8 bn. Increase in trade of machine and machinery products, mineral fuels and raw materials had a positive effect on trade balance, on the other hand worsening of trade of chemicals, semi-finished product and materials had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted exports increased by 2.5%, and imports increased by 1.9%. Trends of exports increased by 1.7%; trends of imports came up by 1.1%.
 
In Q1, volume of both exports and imports enlarged by 16.1% and 14.6%, m-o-m respectively.  The y-o-y trade balance surplus amounted to CZK 53.8 bn was higher by CZK 20 bn more than a year ago. In Q1 volume of exports grew by 16.7% and imports by 15.7%, in Q2 exports were up by 15.5% and imports by 13.6%. The surplus of trade balance arrived in Q1 at CZK 34.5 bn , in Q2 CZK 19.2 bn.
 
 
JULY 2007
 
Consumer prices ³

In July, m-o-m consumer prices level increased by 0.4%; prices of goods dropped by 0.1%, prices of services increased by 1.0%. This jump was brought on increase in prices of holiday stay of foreign and domestic stays (by 16.1%, or 6.5%, respectively). Prices of tobacco products (by 2.0%) net rental in dwellings with controlled rental   (by 1.9%) , prices of natural gas (by 1.6%) and automotive fuel (by 0.8%) grew by above-average paces. The y-o-y growth of consumer prices decelerated to 2.3% (less by 0.2 % than in June 2007) development of prices level influenced most prices of alcoholic drinks and tobacco (prices of tobacco products increased by 19.3%), then in dwellings, water, energy, fuel (net rental increased in dwellings with control rental by 14.1%), food and non-alcoholic drinks. In total, prices of goods increased by 2.1%, prices if services by 2.7%.
 
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, amounted to 2.1% in July, so the same like in May and in June.
 
In July 2007, the y-o-y increase of harmonised index of consumer prices reached 2.5% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.8%).
 
Unemployment

The registered unemployment rate in July 2006, identically as in previous years, m-o-m increased and to the end of the month arrived to 6.4%; the females’ unemployment rate was 8.3%; the unemployment rate of males was 5.0%. As against the end of July 2006 was by 1.5 p. p. lower. Labour offices registered 376.6 thousand job applicants at the end of June, which is approx. more by 5.8 thousand people but in comparison to July 2006 it declined markedly by considerable 17.8%. Especially share of unemployed females and freshly graduated students on the structure of registered job applicants increased. Number of unemployed freshly graduated students and adolescents increased by 1.6 thousand in the first month of holidays and its share on the total of unemployed people as against last month increased by 0.3 p.p. to 5.3%, and last year reached 6.0%. Despite the unemployment growth, number of job opportunities jumped to the record-breaking level 124.0 thousand. Number of applicants per one job opportunity was 3.0 at the end of June; compared to June 2006, when it was 5.2 persons.
 
Harmonized unemployment rate ⁴ has been published by Eurostat to obtain an international comparison, reached 5.5% in the Czech Republic in June and was by 1.5 p.p. lower than a year ago.
 
This press release was not edited for language.
 

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¹ Starting January 2007, the Czech Statistical Office proceeded to publish data on number of people employed in the short-time statistics of industry. This new index comprises also persons working in sense of contract for work (outside employment) and other people who are engaged to work in a company but they are outside employment. Data have been recalculated to a full-time employment. Calculation of an average salary and labour productivity also reflects this arrangement. The second mentioned indicator comprises also number of agency workers that are not involved into the total number of employees. The y-o-y data comparability is guaranteed.
² Employees working in construction enterprises through personnel agencies as well as foreigners working in construction are not involved into average registration number of employees
³ Starting January 2007 consumer prices indices has been calculating in accordance with revised consumption basket, which respects the 2005 weight structure. By this revision of calculation, data published to the end of December 2006 did not change.
⁴ 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