Selected economy indicators - July, August 2008

In June, the y-o-y volume of industrial production slowed down, volume of construction outputs remained under the last year level. The y-o-y exports enlarged; volume of imports lessened, and the trade balance surplus was higher on a year ago.
The July consumer prices level was higher than in June, the y-o-y prices growth lightly accelerated. The registered unemployment rate increased in the first holiday month, similarly like in previous years.JUNE 2007
 
Industry
 
In June, the y-o-y volume of industrial production was by 2.2% higher. In total, the growth contributed fast growing manufacturing of electrical and optical appliances by 2.0 p.p. (growth in the branch by 14.3%); next 0.8 p.p. manufacturing of basic metals, metallurgical and metalworking products (growth in the branch by 6.0%), and by 0.7 p.p. manufacturing of chemicals, preparations, drugs and chemical fibres (growth by 13.2%). Drop in food production, beverages, tobacco products, manufacturing of textiles, textile and clothing products and manufacturing of other non-metal mineral products had the biggest negative affect. Manufacturing of means of transport remained at the June level of the last year. The seasonally adjusted industrial production decreased by 0.7% in comparison to the May level; the trends have been growing up by 0.2%.
 
In June, sales in industry went up by 2.1% in terms of real comparison y-o-y, direct export sales by 4.3%. Industrial foreign-controlled enterprises increased its sales in industry by 2.3% and direct export sales by 4.2%. Its share in total sales was 59.4% at current prices; in June 2007 it was 60.5%.
 
An average number of employees in industry increased by 1.5%, (i.e. by 17.9 thousand people), their average monthly wage amounted to CZK 22 837 in June was up nominally by 7.9% on a year ago, really by 1.1%. Labour productivity ¹ rose by 0.4%.
 
In June, the y-o-y value of new orders in selected industrial branches decreased by 6.0 % , value of foreign orders by 8.5 %.
 
In H1, as against the same period of the last year volume of industrial production was by 5.8% higher, identically in Q1 and Q2. Sales in industry rose by 5.7% and direct export sales by 7.8% in terms of real comparison. Number of employees in industry increased by 2.2%, an average monthly wage increased nominally by 10.0% and really by 2.7%. Labour productivity ¹ rose by 2.8% y-o-y.
 
Construction
 
In June, the y-o-y volume of construction output was by 2.8% lower, in terms of real comparison, after seasonal adjustment dropped by 0.2% in June 2008 m-o-m; the trends were up by 0.1%.
 
In construction enterprises (with 20+ employees), the y-o-y volume diminution of construction work by 3.4% was affected by a reduced volume of work on new constructions, reconstructions and modernizations in both, building constructions and structural engineering. Also volume of construction work abroad dropped. On the other hand, work on reparations, maintenance and other work went up sizeably.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 1.2% as against June 2007. The y-o-y average monthly wage reached CZK 23 860 and increased by 13.0%, and by 5.9% in real terms. Labour productivity per employee decreased by 2.2% compared to June 2007 level.
 
In June, planning and building control authorities granted by 15.9% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 40.6 bn, and in comparison to June 2007 jumped by 43.3% in all kinds of construction work. Planning and building authorities permitted 4 513 new dwellings, which was more by one third than more as against June 2007.
 
In H1, the y-o-y volume of construction output was by 0.9 % higher in terms of real comparison, in Q1 went up by 4.0%, whilst in Q2 dropped by 1.3%. This fall caused only performance decrease in building construction. Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.3% and labour productivity per employee increased in these enterprises by 0.2%. The average monthly wage increased nominally by 12.0% and really by 4.6%. Number of building permissions granted by planning and building control authorities went up by 8.1% y-o-y, the approximate value of permitted constructions increased by 17.8%.
 
External trade
 
In June, the y-o-y volume of exports increased by 1.7% and the y-o-y volume of imports lessened by 1.0% (both in current prices). Machines and means of transport had the highest proportion in exports and imports (53.0% and 40.3%, respectively). The trade balance ended in a surplus of CZK 13.9 bn, which was by CZK 5.8 bn higher on a year ago, and the second highest in this year. The trade balance with EU 27 member states was active by CZK 43.6 bn, with non-EU 27 states passive by CZK 29.7 bn. Improvement in trade of machines, means of transport, semi-finished goods; materials had a positive effect on the trade balance. On the contrary, the deficit in trade in mineral fuels deepened.  According to preliminary data, m-o-m seasonally adjusted exports increased by 1.3%, imports by 2.0%. The trend indicates a growth in exports by 0.4% and imports by 0.1%.
 
In H1, volume of exports enlarged by 5.2% and imports by 4.8%; the paces of both were by more than 10.0 p.p. lower on a year ago. The trade balance surplus amounted to CZK 64.4 bn was by CZK 7.2 bn higher than in H1 2007. In Q1 volume of exports increased by 5.7% and imports by 7.2%, in Q2 exports by 4.6% and imports by 2.6%, respectively. The Q1 trade balance surplus reached CZK 33.0 bn, in Q2 CZK 31.4 bn.
 
 
JULY 2008
 
Consumer prices
 
In July, m-o-m consumer prices level increased by 0.5%; prices of goods increased by 0.2%, prices of services increased by 1.1%. The prices increase in July affected especially higher prices of natural gas by 9.7%, package holidays by 13.1%, and tobacco products by 2.1%. Also net rental in rented flats, prices of solid fuels and prices of free available drugs increased. The y-o-y growth of consumer prices by 6.9% was by 0.2 p.p. higher than in previous month. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.8 p.p., prices growth by 10.9%), food and non-alcoholic drinks (1.7 p.p., prices growth by 10.4%), alcoholic drinks and tobacco (0.7 p.p., prices growth by 8.0%). Despite the fact that prices in health care delivery increased almost by one third, its effect was only 0.6 p.p. In total, prices of goods jumped by 6.2% and prices of services by 8.0%.
 
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 5.8 % in July and was by 0.4 p.p. higher than in June. According to social groupings, living costs (hypothetical rental fee is not involved) in households of employees jumped by 5.5%, in households with children and minimal incomes by 7.0%, in households of pensioners by 7.3%.
 
In July 2008, the y-o-y increase of average harmonized index of consumer prices reached 6.8% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 4.1%).
 
Unemployment
 
In July, the registered unemployment rate increased m-o-m, similarly like in previous years; and at the end of the month amounted to 5.3%. The unemployment rate of females was 6.9% and men 4.0%. As against July 2007, the registered unemployment rate was by 1.1 p.p. lower. Labour offices registered more than 300.0 thousand job applicants at the end of July, which was by 12.2 thousand higher than a month ago. Share of unemployed females and freshly graduated students increased in the structure of unemployed people. As against preceding month, number of unemployed freshly graduated students and adolescents increased by 1.9 thousand, in the first holiday month, like in previous years, its share in the total number of unemployed persons went up by 0.4 p.p. to 5.5%, and, for the second time in this year was higher on a year ago. Number of job opportunities decreased to 150.2 thousand. Number of applicants per one job opportunity at the end of July was only 2.1; compared to July 2007, when it was 3.0 persons.
 
This press release was not edited for language.

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¹ Labour productivity is defined as a proportion of index of sales in industry  (at constant prices) to index of number of people employed and people working through agencies
² Employees working in construction enterprises through personnel agencies are not involved into average registration number of employees