Selected economy indicators - June 2004
Selected economic indicators
Publication Date: 13. 08. 2004
Product Code: r-1101-04
MAY AND JANUARY- MAY 2004
Industry
In May industrial production was keeping up the high grow rate, the year-on-year industrial production index reached 112.7% (after working days adjustment it was 110.4%). The highest growth rate occurred in capital goods and consumer durable. The following CZ-NATE activities were main contributors to the rise in the industrial production: manufacture of transport equipment, manufacture of electrical and optical equipment and manufacture of basic metals and fabricated metal products. Decreases in the industrial production were mainly recorded for manufacture of leather and leather products, mining and quarrying except energy producing materials and manufacture of food products, beverages and tobacco products. The m-o-m industrial production (e.g. compared to April 2004) increased by 0.7% after working days adjustment.
Appreciation of total sales in industry was higher than the industrial production growth. Sales in industry at constant prices were higher by 16.3% y-o-y (or 13.8% after working days adjustment). Direct export sales rose by 21.9% really and their share in total sales was almost one half (at current prices). Industrial foreign-controlled enterprises raised their sales even faster, by 21.9% y-o-y, direct export sales of these enterprises increased by 24.4%. The decrease in number of employees in industry continued slowly (by 9.9 thousand, i.e. 0.9% y-o-y), i. e. that the employment in industry has not fluctuated for three months. Labour productivity (sales per employee) was 17.3% up y-o-y. In May the average monthly nominal wage amounted to CZK 17 592, which was up both nominally and really by 5.2% and 2.4% than in the last year. Lower growth of average monthly wage together with labour productivity increase resulted in decrease of unit wage costs by 10.3%.
From January to May 2004 industrial production has grown by 9.9% y-o-y (after working days adjustment it was 9.0%), sales in industrial production were 10.4% up (after working days adjustment it was 9.4% up). The average number of employees in the industry fell by 1.2%, average monthly nominal wage increased by 7.5%, really by 5.0%. Labour productivity was 11.7% up; as a result of it unit wage costs dropped by 3.8% y-o-y.
Construction
In May the y-o-y volume of construction output shrank by 2.4%, after working days adjustment it was by 3.7%. The fall in May affected especially pre-invoiced construction work, as April was the last month to have seen reduced VAT. In accordance with the CZSO calculations, this plummet in May corrected approximately one third of the enormous April appreciation. The fall in construction output manifested itself in the whole structure of construction work and in all sizes of construction companies. Number of employees (in construction enterprises with 20+ employees) rose only by 3.9% y-o-y. The average monthly wage reached CZK 17 228 rising by 2.3% nominally and dropped really by 0.4% y-o-y.
From January to May 2004, the construction output increased by 22.9% (after working days adjustment it was 22.3%) y-o-y . This high growth rate influenced the enormous gain stated in April. In enterprises with 20+ employees labour productivity increased by 19.2% y-o-y, average monthly wage rose by 7.2% nominally and 4.7% really. Unit wage costs were 10.1% down.
External trade
In May a growth rate of external trade kept on growing after joining the EU single market. The y-o-y external trade turnover grew almost by one-third, current price exports and imports were 33.9% and 32.1% up, respectively. Exports of products of mechanical engineering rose markedly (by 58.4% up), of which mainly telecommunications equipment and computers. Imports of electrical equipment and appliances and industrial machinery and equipment enhanced, imports of miscellaneous consumer articles grew too, by more than one third. External trade ran a deficit of CZK 0.9 bn, which was by CZK 1.3 bn less than in May 2003. Trade in machinery and transport equipment favourably influenced the balance, whereas the balance of trade in miscellaneous consumer articles deteriorated. Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, both exports and imports grew faster in US dollars, and slower in terms of euros. Both seasonally adjusted exports and imports were by 3.4% up and by 6.9% down m-o-m .
From January to May both exports and imports rose by 19.2% and 18.5%, respectively. Trade balance deficit reached CZK 12.6 bn; compared to the same period of the last year it decreased by CZK 1.4 bn.
JUNE 2004
Consumer prices
In June, consumer prices level increased by 0.2% m-o-m (i.e. compared to May). Prices of goods stagnated, while prices of services increased by 0.6%. The increase in the price level was affected by the rise in seasonal prices of recreational stays abroad and domestic stays, tobacco products, drugs, financial services and prices of food in restaurants and canteens. Price growth of automotive fuel distinctively slowed down, they were only by 0.4% up. The price level of food and non-alcoholic beverages remained unchanged. The y-o-y prices increase by 2.9% was affected by the rise in prices of food (by 1.2%) and prices of services (by 5.8%). The biggest growth acceleration was recorded in the divisions as follows: post services and telecommunications, hotels and restaurants. 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 1.4% in June and since December 2003 has increased by approximately 0.2 percentage points per month.
The y-o-y increases in the average price level were by 2.3% in Q1 and 2.6% in Q2, respectively.
Unemployment
At the end of June 2004 the registered unemployment rate (source: Ministry of Labour and Social Affairs of the Czech Republic) reached 9.87% (males 8.49%, females 11.62%). It was 0.05 percentage points less m-o-m, entirely due to drop in number of unemployed males; however number of unemployed females increased. At the end of June 2004 labour offices registered 517.5 thousand of unemployed job applicants, which was by 16.5 thousand job applicants more compared to June 2003. This difference has kept on diminishing since February 2004, when amounted to 32.7 thousand of job applicants. Compared to June 2003, number of unemployed graduates and juveniles reduced almost by one fourth. Number of job opportunities increased by 1.7 thousand; number of applicants per one job opportunity was alike a year ago (11.6).
This press release was not edited for language.