Selected economy indicators - March 2007

The y-o-y volume of industrial production was supported by an intensive demand from abroad and enlarged by more than 15%. Volume of construction output enlarged almost by one third. Growth paces of exports outstripped that of imports, in February the trade balance ended in a record-breaking surplus.
 
In March, the y-o-y level of consumer prices was higher compared to February, the y-o-y growth of prices accelerated. In March (and in February alike) the registered unemployment rate dropped also faster on a year before. 
FEBRUARY 2007
 
Industry
 
In February, the y-o-y volume of industrial production increased highly by 15.4%. In total, manufacturing of electrical and optical appliances (by 4.6 p. p.) contributed to this growth in the branch by 41.2%, next 3.6 p. p. manufacturing of means of transport and equipment  (growth by 16.4%), and 1.6 p.p. manufacturing and servicing of machinery and equipment (growth by 26.1%). The volume of production lessened only in branches of mining of energy producing raw materials, and manufacturing of electricity, gas and water and manufacturing of leather and leather products. The m-o-m seasonally adjusted industrial production increased by 1.9%, the trend has concurrently been growing up by 1.1%.
 
In February, sales in industry were higher by 16.8% in terms of real comparison y-o-y, direct export sales increased by 24.2%. Industrial foreign-controlled enterprises increased its sales in industry by 22.1% and direct export sales by more than one fourth (25.1%). Its share in total sales was 61.4% at current prices; in February 2006 it was 58.4%. 
 
Number of employees ¹ in industry increased by 2.6%, (i. e. by 29.8 thousand people) y-o-y; labour productivity (sales per one employee) was by 13.0% up. The y-o-y average monthly wage amounted to CZK 18 709 was up both nominally and really by 6.8% and 5.2 %, respectively. Labour productivity grew faster than increase of average wages; therefore unit wage costs decreased by 5.5%.
 
The y-o-y value of new orders in selected industrial branches enlarged by 14.1% in February.  Value of new foreign orders enlarged by 18.7%. 
 
In January to February, as against the equal period of 2006, the volume of industrial production enlarged by 13.0%. Sales in industry enlarged by 14.3% in real terms, direct export sales jumped by 21.5%. Number of employees in industry increased, an average monthly wage increased nominally by 8.0%, really by 6.5%. Labour productivity grew by 10.6%, as a result the y-o-y unit wage costs dropped by 2.4%.
 
Construction
 
In February, the y-o-y volume of construction output was higher by 32.5% (at constant prices). A favourable course of winter weather has been continuing that enabled construction companies reach much higher gain than in January. Volume of construction work enlarged in all types of construction, especially in building construction. In construction enterprises (with 20+ employees), volume of new constructions, reconstructions and modernization in building construction (by 24.7 p. p.) and in civil engineering (3.8 p.p.) most affected the y-o-y growth. Construction work abroad jumped more than 2.5times and contributed to this growth by 3.0 p. p. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased really by 2.6 %, the m-o-m trends grew coincidently.
 
Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.1% as against February 2006. The y-o-y average monthly wage reached CZK 17 891 and increased nominally by 13.0% and by 11.3 % in real terms. Labour productivity increased by 32.6% per employee and unit wage costs decreased by 14.8%.
 
In February, planning and building control authorities granted by 7.7% y-o-y more construction permissions to be constructed. The approximate value of newly permitted constructions arrived at CZK 25.1 bn was almost by 3.2% lower on a year before. Planning and building authorities permitted 2 969 new dwellings, which was by 14.2% less than in February 2006.
 
In January to February the y-o-y construction output was by 31.0% higher in terms of real comparison. In construction enterprises (with 20+ employees) the labour productivity went up by 31.1%, an average monthly wage increased nominally and really by 14.3% and 12.7%, respectively. Unit wage costs decreased by 12.8%.
 
External trade
 
In February, the y-o-y value of both exports and imports enlarged by 19.5% and 14.5%, respectively (all at current prices). Due to the appreciation of the koruna against EUR and USD exports and imports rose faster in terms of both euros and dollars. The trade balance ended in a surplus of CZK 13.6 bn, which was the highest one in the history of the independent Czech Republic, and was by CZK 8.8. bn higher on a year before. Trade balance with EU 27 member states was active by CZK 37.1 bn, with non-EU 27 states passive by CZK 23.5 bn. Increase of trade surplus in machinery and transport equipment had a positive effect on trade balance y-o-y, drop in trade deficit in mineral fuels and related materials had almost the same contribution. According to preliminary data, m-o-m seasonally adjusted exports increased by 0.8%, whilst imports dropped by 1.2%. Trends of both exports and imports came up by 1.3% and 1.4%, respectively.
 
In January to February, volume of both exports and imports enlarged by 16.6% and 15.0%, respectively. The y-o-y trade balance surplus amounted to CZK 24.6 bn was higher by CZK 7.7 bn.
 
 
MARCH 2007
 
Consumer prices ³
 
In March, m-o-m consumer prices level increased by 0.3%; prices of goods by 0.5%, prices of services did not change. This jump was brought on increase in prices of tobacco products by 3.3% as a result of consumer tax increase. After one half-year drop, prices of automotive fuel increased, and prices of some kind of food also increased. The y-o-y growth of consumer prices accelerated to 1.9% (more by 0.4 p.p. than in February 2007). The y-o-y growth in consumer prices further affected most markedly prices in housing, water, energy and fuel. Prices of water supply increased by 6.4%, prices of sewerage collection by 6.0%, prices of electricity by 7.9% and prices of solid fuel by 15.4%. Net rental in dwellings with controlled rental jumped by 8.3%. The second one influence on price increase had prices in food and non-alcoholic drinks. Prices level of goods increased by 1.0% y-o-y, prices of services by 3.4%. In Q1 2007 as against Q1 2006 consumer prices went up by 1.5%, controlled prices by 4.9% and market prices by 1.1%.
 
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 2.2% in March, i. e. less by 0.1% than in February 2007.
 
In March 2007, the y-o-y increase of harmonised index of consumer prices reached 2.1% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.9%).
 
Unemployment
 
The registered unemployment rate in March 2007, decreased by 0.4 p. p., as against February, which was more on a year before. At the end of the month the registered unemployment rate reached 7.3%; it decreased by 1.5 p. p. as against end of March 2006. The females’ unemployment rate was 8.7%; the unemployment rate of males was 6.2%. Labour offices registered 430.5 thousand job applicants at the end of March, which is approx. less by 24.2 thousand people as against last month. As against end of March 2006 it declined markedly by almost 16.4%. Share in number of unemployed freshly graduated students and juveniles to the number of unemployed people has been dropping faster and its share in total number of unemployed people went down by 0.1 p.p. to 6.4%, last year arrived to 7.0%. Number of job opportunities went up again. Number of applicants per one job opportunity was 4.0 at the end of March; compared to March 2006, when it was 7.3 persons.
 
This press release was not edited for language.

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¹ Starting January 2007, the Czech Statistical Office proceeded to publish data on number of people employed. This new index comprises also persons working in sense of contract for work (outside employment) and other people who are engaged to work in a company but they are outside employment. Data have been recalculated to a full-time employment. Calculation of an average salary and labour productivity also reflects this arrangement. The y-o-y data comparability is guaranteed.
² The average registered number of employees does not include agency workers and foreigners working in construction.
³ Starting January 2007 consumer prices indices has been calculating in accordance with revised consumption basket, which respects the 2005 weight structure. By this revision of calculation, data published to the end of December 2006 did not change.

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