Selected economy indicators - March 2005
Selected economy indicators
Publication Date: 12. 05. 2005
Product Code: r-1101-05
FEBRUARY AND JANUARY – FEBRUARY 2005
Industry
In February the y-o-y industrial production index reached 105.6%. Industrial production raised most in the production of intermediate goods by 12.8%, on the contrary production of consumer durables dropped by 13.5%. The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture of coke and petrol products, manufacture of machinery and equipment, manufacture of chemicals and chemical products. Decreases in the industrial production were recorded in manufacture of leather and leather products, wood products and manufacture of mining and quarrying energy producing materials. The m-o-m seasonally adjusted industrial production (compared to January 2005) was down by 0.2 %, growth rate did not change.
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Sales in industry at constant prices were higher by 5.8% y-o-y . Direct export sales increased by 10.6% really in February, its share in total sales stood at 46.3% (at current prices). Industrial foreign-controlled enterprises (its influence on industry has been rising) increased its sales in industry by 10.6% in real terms, direct export sales were up by 13.0%. In February number of employees in industry increased by 1.1%, labour productivity (sales per employee) was 4.6% up. The y-o-y average monthly wage amounted to CZK 16 301 was up both nominally and really by 4.0% and 2.3%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs dropped by 0.6%.
The y-o-y volume of new orders in selected industrial branches increased almost by 3.5% at current prices in February , foreign orders (sharing two thirds of total amount of orders) were 12.1% up.
January to February industrial production jumped by 6.4%, compared to the equal period of the last year. Sales in industry rose by 8.4%, direct export sales were up by 15.4%. An average monthly wage increased by 3.5% nominally and by 1.8% really, by employment growth in industry by 1.0%. As a result of labour productivity grew by 7.3%, y-o-y unit wage costs dropped by 3.5% y-o-y.
Construction
In February the growth rate of construction outputs was influenced by unfavourable weather. Total construction outputs increased by 3.8% (at constant prices) y-o-y . The construction output grew mainly due to civil engineering activities on new construction (highways, underground lines). The volume of construction work on repairs and maintenance of constructions decreased in the fifth subsequent month already. Number of employees in construction enterprises with 20+ employees was up by 4.1% than a year ago. The average monthly wage reached CZK 16 260 and increased year-on-year nominally by 1.3% nominally and decreased by 0.4% in real terms. Labour productivity slightly increased by 0.5% per employee. Unit wage costs increased by 0.7%. The m-o-m (i. e. as against January 2005) seasonally adjusted construction outputs lessened by 0.8% in real terms, paces of growth trend slightly accelerated.
January to February 2005 construction output enlarged by 8.1% y-o-y . Labour productivity increased by 4.7% in enterprises with 20+ employees; an average wage increased by 1.6% nominally at a real drop by 0.1%. Unit wage costs were down by 3.0% compared to the equal period of the last year.
In February 2005 planning and building control authorities permitted 8 056 dwellings to be constructed; the approximate value of newly permitted dwellings reached CZK 21.3 bn that was by 30.2% more than a year ago at current prices.
External trade
In terms of y-o-y comparison, in February growth paces of both, imports and exports decelerated by 9.6% or 9.3%, respectively (at current prices). This was the lowest growth since January 2004 (except imports in December). The trade balance ended in a record-breaking surplus in 11 years of CZK 5.2 bn, in comparison to that in February 2004 was by CZK 0.7 bn higher. Trade balance with EU member states reached a surplus of CZK 22.9 bn, trade balance with with non-EU states ended in a deficit of CZK 17.7 bn. Balance improved in trade in machinery and transport equipment, food and live animals and worsened in trade in mineral fuels, lubricants and related materials and miscellaneous manufactured articles.
The m-o-m seasonally adjusted exports and imports (i. e. as against January 2005) decreased by 1.4% and 5.2%, respectively. The growth rate of the trend cycle component in both exports and imports grew in the second successive month.
January to February , in terms of y-o-y comparison both exports and imports jumped by 19.0% and 17.6%. The trade balance surplus amounted to CZK 8.7 bn, which was up by CZK 4.1 bn compared to the equal period of the last year.
MARCH 2005
Consumer prices
In March the m-o-m consumer prices level slightly decreased by 0.1% (i.e. compared to February 2005); prices of goods remained unchanged, prices of services dropped by 0.1% (especially by a drop in seasonal prices of recreational stays). Lower prices in food and non-alcoholic beverages, clothing and footwear, household equipment and maintenance contributed to the prices decrease. The price level somewhat increased in automotive fuel, stays at spas, school fees, canteens and accommodation services. In terms of y-o-y comparison, consumer prices boost slowed down at 1.5% (it was by 0.2 percentage point lower than in February). Drop in prices in food and non-alcoholic beverages resulted in a slowdown in the price growth. As against March 2004 prices of medicaments, prices of meals in public catering, restaurants and hotels, tobacco products and financial services raised most. The biggest increase was recorded for prices of natural gas, electricity and refuse collection. Prices of goods remained unchanged as against March 2004, prices of services rose by 4.1%. 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 2.6% in March.
In March the y-o-y increase of harmonised index of consumer prices reached 1.2% in the Czech Republic (according to a flash estimate published by Eurostat, the HICP in Euro-zone was 2.1%).
Unemployment
Harmonised unemployment rate 1 has been calculated by Eurostat to obtain an international comparison, reached 8.5 % in the Czech Republic in March and ended 0.2 p. P. Lower on a year before. An unemployment rate in the Czech Republic is under the EU25 average.
According to the new methodology unemployment reached 9.4% at the end of March, which was by 0.2 percentage points less m-o-m and by 0.1 percentage points less y-o-y. The females’ unemployment rate was 10.7%, the unemployment rate of males was 8.4%.
According to the former methodology , the unemployment rate was 10.3% at the end of March, which was by 0.3 percentage points less m-o-m and by 0.4 percentage point less y-o-y.
Labour offices registered 540.5 thousand at the end of March, which is by 14.6 thousand people less than last month. There were 505.2 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 dropped to 7.5% (a year ago it was 9.4%) Number of applicants per one job opportunity was 10.1 at the end of March; at the end of March 2004 it was 13.2.
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1 It is estimation that:
- 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
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