Selected economy indicators - June 2005
Selected economy indicators
Publication Date: 15. 08. 2005
Product Code: r-1101-05
MAY 2005
Industry
In May the y-o-y industrial production index reached 104.0%. Industrial production in manufacture consumer durables and manufacture of intermediate goods raised most. Highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture of transport equipment, mining and quarrying except of energy producing materials, manufacture of rubber and plastic products and manufacture and servicing of machinery and equipment. Decreases were observed only in manufacture of textile and clothing products, manufacture of basic metals and fabricated metal products and in manufacturing and electricity, gas and water supply. The m-o-m seasonally adjusted industrial production decreased by 0.8%, the growth rate trend decelerated.
In May sales in industry were higher by 7.5% y-o-y (at constant prices), direct export sales increased by 7.1%. Industrial foreign-controlled enterprises increased its sales in industry by 13.7% in real terms; direct export sales were up by 9.1%. In this month number of employees in industry increased by 0.6% (i. e. by 6.4 thousand people) compared to May 2004, labour productivity (sales per employee) was 6.9% up. The y-o-y average monthly wage amounted to CZK 18 544 was up both nominally and really by 5.3% and 3.9%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 1.5%.
The y-o-y volume of new orders in selected industrial branches decreased almost by 1.5% in May , foreign orders (sharing more than two thirds of total amount of orders) went down by 0.2%.
In January to May industrial production enlarged by 4.4%, compared to the equal period of the last year. Sales in industry rose by 6.7%, direct export sales were up by 11.2%. An average monthly nominal wage increased by 4.0% nominally and by 2.4% really, at employment growth in industry by 0.6%. As a result of labour productivity grew by 6.0%, y-o-y unit wage costs dropped by 1.9%.
Construction
In May the y-o-y construction output was affected by the switch of construction work to the category of basic VAT rate (since 1 May 2004). Due to the lower reference basis construction outputs jumped by 26% (at constant prices) in May, after a sizeable drop in April 2005. According to model calculations by the CZSO, construction outputs rose by 4.8% in May 2005. Number of employees in construction enterprises (with 20+ employees) rose by 4.5% in April, compared to the equal period of the last year. The average monthly wage reached CZK 18 420 and increased year-on-year by 6.5% nominally and by 5.1% in real terms. Labour productivity increased by 20.2%. The m-o-m seasonally adjusted construction outputs increased by 1.3 % in real terms, the growth trend went up.
The above-mentioned facts also affected results in January to May when the total construction output lessened by 5.9% in real terms than a year ago. In construction enterprises with 20+ employees labour productivity dropped by 8.9%, the average monthly wage increased by 3.6% nominally and by 2.0% in real terms.
In May 2005 planning and building control authorities permitted 13 038 dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 29.1 bn was by 18.0% more than a year ago.
External trade
In terms of y-o-y comparison, in May both exports and imports fell by 1.1% and 4.3% at current prices. This drop was affected by the high comparative basis of May 2004, which was the first month of the Czech Republic’s membership of the EU. The trade balance ended in a surplus of CZK 6.0 bn (i. e. by CZK 4.9 bn more than in May 2004). Trade balance with EU member states reached a surplus of CZK 24.5 bn, trade balance with non-EU member states ended in a deficit of CZK 18.5 bn. A favourable development was recorded in trade in machinery and transport equipment, on the other hand deficit worsened in trade in mineral fuels. According to preliminary data, m-o-m seasonally adjusted exports fell by 1.3% and imports slightly increased by 0.2%. The growth rate trend of both, exports and imports speeded up.
In January to May , in terms of y-o-y comparison both exports and imports jumped by 9.5% and 3.7%. The trade balance surplus reached CZK 30.5 bn, which was by CZK 39.0 bn more in comparison to the equal period of the last year.
JUNE 2005
Consumer prices
In June, m-o-m consumer prices level increased by 0.6%; (prices of goods by 0.3% and prices of services by 1.2%), which was the second higher gain in this year. Increase in the price level was influenced by a marked increase in prices of telecommunication services (+16.6%), prices of automotive fuel and prices of full services holiday stays, prices of medicaments and potatoes. On the other hand, prices of vegetables and fruits went down. In terms of y-o-y comparison, consumer prices growth accelerated to 1.8%, which was the fastest prices growth in this year. As against June 2004 prices of public telecommunication services, automotive fuels raised most; prices of food and non-alcoholic beverages also swayed. In terms of y-o-y comparison, prices of goods went up by 0.6%; prices for services were higher by 3.7%. 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 2.4% in June.
In June the y-o-y increase of harmonised index of consumer prices reached 1.5% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 2.1%).
Unemployment
The registered unemployment rate according to the new methodology reached 8.6% at the end of June and did not change as against last month. Compared to end of June 2004 it decreased by 0.3 p.p. The females’ unemployment rate was 10.4%; the unemployment rate of males was 7.2%.
According to the former methodology , the unemployment rate was 9.3% at the end of June, which was by 0.1 percentage points less m-o-m and by 0.6 percentage point less y-o-y.
Labour offices registered 489.7 thousand job applicants at the end of June, which is by 4.9 thousand people less than the last month and by 27.8 thousand people less than in the equal period of the last year. There were 461.9 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 5.8% (a year ago it was 7.4%). Number of applicants per one job opportunity was 8.6 at the end of June; at the end of June 2004 it was 11.4.
This press release was not edited for language.