Selected economy indicators - June, July 2008

In May, the y-o-y volume of industrial production enlarged, volume of construction outputs lessened. Exports remained at the May 2007 level; drop in imports contributed to the trade balance surplus increase. In May was less one day on a year ago.

The June consumer prices level was higher than in May, the y-o-y prices growth slowed down. The registered unemployment rate did not change, as against May, it was sizeably lower than in June last year. Less than 300 thousand unemployed persons were registered, that was last time ten years ago.


MAY 2007


Industry

In May, the y-o-y volume of industrial production was by 3.4 % higher, after working days adjustment industrial production was higher by 5.2 %. Taking vacations during public holiday affected also slowing down of the pace. In total, the growth contributed fast growing manufacturing of electrical and optical appliances by 3.4 p.p. (growth in the branch by 25.2 %); next identically by 0.7 p.p. manufacturing and servicing of machines and appliances (growth in the branch by 10.0 %), and manufacturing of means of transport and appliances (growth in the branch by 3.2 %). Drop in food production, beverages, tobacco products, manufacturing of textiles, textile and clothing products and manufacturing of non-metal mineral products had the biggest negative affect. The seasonally adjusted industrial production decreased by 0.7% in comparison to April level; the trends have been growing up by 0.5%.

In May, sales in industry went up by 3.5 % in terms of real comparison y-o-y (after working days adjustment were by 5.4 % higher), direct export sales by 6.5 %. Industrial foreign-controlled enterprises increased its sales in industry by 4.7 % and direct export sales by 8.0 %. Its share in total sales was 59.2 % at current prices; in May 2007 it was 60.1%.

An average number of employees in industry increased by 1.9 %, (i.e. by 22.5 thousand people), their average monthly wage amounted to CZK 23 256 in May was up nominally by 7.1% on a year ago, really by 0.3 %. Labour productivity ¹ rose by 1.2%.

In May, the y-o-y value of new orders in selected industrial branches decreased by 1.9 % , value of foreign orders by 6.0 %.

In January to May 2008 volume of industrial production was by 6.6% higher on a year ago. Sales in industry rose by 6.4 % and direct export sales by 8.5 %. Number of employees in industry increased by 2.3 %, an average monthly wage increased nominally by 10.4 % and really by 3.1 %. Labour productivity rose by 3.4 %. ¹


Construction

In May, the y-o-y volume of construction output was by 2.9% lower (at constant prices), after working days adjustment dropped by 1.5%. The seasonally adjusted construction outputs were really by 0.2 % higher m-o-m in May 2008, the trends were up by 0.1 %.

In construction enterprises (with 20+ employees), the y-o-y volume diminution of construction work by 3.2 % was affected by a reduced volume only in building construction (index 90.1 %). Construction work in structural engineering, other work, and work abroad increased.

Number of employees ² in construction enterprises (with 20+ employees) went down by 1.3 % as against May 2007. The y-o-y average monthly wage reached CZK 24 335 and increased by 7.9 %, and by 1.0 % in real terms. Labour productivity per employee decreased by 1.9 % compared to May 2007 level.

In May, planning and building control authorities granted by 11.5% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 34.8 bn, and in comparison to May 2007 jumped by 35.9 % in all kinds of construction work. Planning and building authorities permitted 4 277 new dwellings, which was more by 21.0 % than in May 2007.

In January to May the y-o-y volume of construction output was by 1.8 % higher in terms of real comparison. In construction enterprises (with 20+ employees) number of employees went down by 0.2%, labour productivity increased by 1.5 %, the average monthly wage increased nominally by 11.9 % and really by 4.5 %.


External trade

In May, volume of exports remained at the May 2007 level, the y-o-y volume of imports lessened by 2.0 % (both in current prices). Machines and means of transport had the highest proportion in exports and imports (53.8 % and 40.9 %, respectively). The trade balance ended in a surplus of CZK 9.2 bn, which was by CZK 3.9 bn higher on a year ago. The trade balance with EU 27 member states was active by CZK 44.3 bn, with non-EU 27 states passive by CZK 35.1 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, especially due to higher import of natural gas. According to preliminary data, m-o-m seasonally adjusted exports lessened by 1.8 %, imports by 7.2 %. The trend indicates a drop in exports by 0.1 % and imports by 0.2 %.

In January to May, volume of exports enlarged by 5.9 % and imports by 6.1 %, the dynamics of both, exports and imports was markedly lower on a year ago. The y-o-y trade balance surplus amounted to CZK 50,5 bn was by CZK 1,4 bn higher.



JUNE 2008


Consumer prices

In June, m-o-m consumer prices level increased by 0.2 %; prices of goods increased by 0.1 %, prices of services increased by 0.4 %. The prices increase in June affected higher prices of fuels by 3.3 %, when price of oil reached the historical maximum and price of petrol Natural 95 was higher only in September 2005. Prices of holiday stays, culture, hotels and restaurants increased by higher paces than average ones. The y-o-y growth of consumer prices by 6.7 % was by 0.1 p.p. lower than in previous month. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.6 p.p., prices growth by 9.9 %), 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 7.9 %). Despite the fact that prices in health care delivery increased by 29.3 %, its effect was only 0.6 p.p. In total, prices of goods jumped by 5.9 % and prices of services by 8.0 %.

In H1 consumer prices increased in average by 7.1 % y-o-y; in Q1 by 7.4 %, in Q2 by 6.8 %.

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 5.4 % in June and was by 0.4 p.p. higher than in May. According to social groupings, living costs (hypothetical rental fee is not involved) in households of employees jumped by 5.1 %, in households with children and minimal incomes by 6.5 %, in households of pensioners by 6.8 %.

In June 2008, the y-o-y increase of average harmonized index of consumer prices reached 6.6 % in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 4.0 %).


Unemployment

The registered unemployment rate at the end of June 2008 amounted to 5.0 % and remained at the same level like a month ago. The unemployment rate of males decreased by 0.1 p.p. to 3.9 %, whilst the females’ unemployment rate increased by 0.1 p.p. to 6.5%. As against June 2007, the registered unemployment rate was by 1.3 p.p. lower. Labour offices registered 297.9 thousand job applicants at the end of June, which was by 4.6 thousand lower than a month ago, as against end of June 2007 number of job applicants reduced by 72.9 thousand people. As against previous month, number of unemployed freshly graduated students and adolescents dropped, its share in the total number of unemployed persons dropped by 0.4 p.p. to 5.1% and, for the first time in this year was higher on a year ago, at the end of June 2007 reached 5.0 %. Number of job opportunities increased to 151.9 thousand. Number of applicants per one job opportunity at the end of June was only 2.0; compared to June 2007, when it was 3.0 persons.

In H1 the registered unemployment rate amounted to 5.6 % in average, in Q1 6.0 %, in Q2 it was 5.2 %.


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

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