Selected economy indicators - March, April 2008

In February, both, the y-o-y growth of industrial production volume and volume of construction outputs reached double-digit value. Growth volume of exports and imports expanded by similar paces, the February trade balance ended in the record-breaking surplus. In February was more one working day on a year before.
The March consumer prices level was lower than in February, the y-o-y prices growth also slowed down. The registered unemployment rate decreased in March, it was sizeably lower than by the end of March 2007.FEBRUARY 2007
 
Industry
 
In February, the y-o-y volume of industrial production was by 11.3% higher, after working days adjustment by 10.7%. In total, fast growing manufacturing of transportation means and equipment supported this growth with 4.0 p.p (growth in the branch by 17.7%), by next 3.3 p.p. manufacturing of electrical and optical appliances (growth in the branch by 25.3%), and by 1.5 p.p. services of machinery and equipment (growth by 22.1%). A drop in production of textiles, textile production and clothing, manufacturing of food, beverages and tobacco products was recorded. The seasonally adjusted industrial production increased by 1.2% in comparison to January level; the trends have been growing up by 0.9%.
 
In February, sales in industry were higher by 10.8% in terms of real comparison y-o-y, direct export sales increased by 11.1%. Industrial foreign-controlled enterprises increased its sales in industry by 11.5% and direct export sales by 11.7%. Its share in total sales was 59.9% at current prices; in February 2007 it was 60.9%. 
 
An average number of employees in industry increased by 2.5%, (i. e. by 28.6 thousand people), their average monthly wage amounted to CZK 21 248 in February was up nominally by 13.1% on a year ago, really by 5.2%. Labour productivity in industry was up by 7.4%.
 
In February, the y-o-y value of new orders in selected industrial branches increased by 4.4% , value of foreign orders dropped by 1.4%. 
 
In January to February as against equal period of the year 2007 volume of industrial production increased by 10.2%. Sales in industry rose by 9.7% and direct export sales by 10.6%. Number of employees in industry increased, an average monthly wage increased nominally by 12.6% and really by 4.7%. Labour productivity rose by 6.0%.
 
Construction
 
In February, the y-o-y volume of construction output was by 11.5% higher (at constant prices), after working days adjustment by 10.3%. The gain was reached despite of a high February 2007 basis, when construction output expanded by record - breaking level 32.1% y-o-y. In construction enterprises (with 20+ employees) the y-o-y volume of construction work by 10.9% was markedly affected by new construction, reconstruction and modernization in structural engineering (effect by 9.9. p.p.) that increased considerable by 46.2% as a result of work on financially high-priced constructions of motorways and highways. Only growth of work on building constructions was moderate. Structural engineering grew more noticeably in volume of work on reconstruction and maintenance. Volume of other work went down, and after more than one year also volume of work abroad lessened. The seasonally adjusted construction outputs were really by 2.4% higher m-o-m in February 2008, the trends were up by 0.7%.
 
Number of employees ¹ in construction enterprises (with 20+ employees) went up by 0.7% as against February 2007. The y-o-y average monthly wage reached CZK 20 859 and increased by 16.7%, and by 8.6% in real terms. Labour productivity per employee increased by 10.1% compared to February 2007 level.
 
In February, planning and building control authorities granted by 5.5% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions was affected by the value growth of non-residential buildings; also value of permitted housing construction noticeably increased and arrived at CZK 29.3 bn, and in comparison to February 2007 jumped by 16.5%. Planning and building authorities permitted 3 364 new dwellings, which was more by 13.3% than in February 2007.
 
In January to February the y-o-y volume of construction output was by 6.7% higher in terms of real comparison. In construction enterprises (with 20+ employees) the labour productivity increased by 5.3%, the average monthly wage increased nominally by 14.4% and really by 6.4%.
 
External trade
 
In February, the y-o-y value of exports enlarged by 11.4%, imports by 11.5% (both in current prices). The trade balance ended in a surplus of CZK 14.3 bn, which was by CZK 1.4 bn higher on a year ago. A positive balance is typical for February since 2002 (except 2003); that was record-breaking. For instance, last year the monthly active was higher than those only in March. The trade balance with EU 27 member states was active by CZK 43.8 bn, with non-EU 27 states passive by CZK 29.5 bn. Increase in trade of machines and machinery products and means of transport, had a positive effect on trade balance, worsening especially in trade of mineral fuels and industrial consumer goods had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted exports lessened by 0.6%, imports by 0.1%. The trend component rose by 2.0% in exports and 1.6% in imports.
 
In January to February, volume of exports enlarged by 11.2% and imports by 10.9%. The y-o-y trade balance surplus amounted to CZK 26,5 bn was by CZK 3,8 bn higher.
 
 
MARCH 2008
 
Consumer prices
 
In March, m-o-m consumer prices level decreased by 0.1%; prices of goods dropped by 0.2%, prices of services increased by 0.2%. The prices reduction in March affected most drop in prices of package holidays, then in foods and non-alcoholic beverages; prices of fruit, meat, eggs, flour, butter, milk and other milk products, sugar, chocolate and chocolate products reduced. Prices of alcohol beverages, wine, and beer went also down, as well as prices and additional charge for drugs. The y-o-y growth of consumer prices 7,1% was by 0.4 p.p. lower than a month ago. The y-o-y development of prices level increase influenced most prices of housing, water, energy and fuel (2.5 p.p., prices growth by 9.7%), food and non-alcoholic drinks (1.8 p.p., prices growth by 10.8%), alcoholic drinks and tobacco (0.9 p.p., prices growth by 11.1%) and public transport (0.7 p.p., prices growth by 6.1%). Prices in health care delivery increased almost by one third. In total, prices of goods jumped by 6.7% and prices in services by 7.8%.
 
In Q1 2008 compared to Q1 2007 consumer prices rose by 7.4%, which was the highest y-o-y growth during last ten years. The jump of administratively regulated prices amounted to 23.8% and market prices were up by 3.6%. Living cost in households of pensioners increased by 9.4%; and in low-income households with children by 8.9%.
 
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 4.3% in March and was by 0.4 p.p. higher than in February.
 
In March 2008, the y-o-y increase of average harmonized index of consumer prices reached 7.1% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.5%).
 
Unemployment
 
The registered unemployment rate in March 2008 decreased by 0.3 p.p. as against February 2008 and arrived to 5.6% to the end of March. The females’ unemployment rate, as well as the unemployment rate of males decreased by 0.3 p.p. to 6.9%, and by 0.4 p.p. to 4.6%, respectively. As against end of March 2007 the registered unemployment rate was by 1.7 p.p. lower. Labour offices registered 336.3 thousand job applicants at the end of March and was by 18.7 thousand lower than a month ago, as against end of March 2007 number of job applicants reduced by more than one fifth. As against previous month, number of unemployed freshly graduated students and adolescents dropped, however its share in the total number of unemployed persons did not change and amounted to 6.1%, at the end of March 2007 reached 6.4%. Number of job opportunities jumped to the record-breaking number 151.3 thousand. Number of applicants per one job opportunity at the end of March was 2.2; compared to March 2007, when it was 4.0 persons.
 
In Q1 2008 an average registered unemployment rate was 6.0% and as against an equal period of the last year dropped by 1.7 p.p.
 
This press release was not edited for language.

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¹ Employees working in construction enterprises through personnel agencies are not involved into average registration number of employees

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