Selected economy indicators - May 2004
Selected economy indicators
Publication Date: 14. 07. 2004
Product Code: r-1101-04
APRIL AND JANUARY - APRIL 2004
Industry
In April industrial production was keeping up the fast grow rate. Year-on-year industrial production index reached 110.1% at the same number of working days. The highest growth rate was recorded for intermediate goods (+15.2%), on the other hand production of energy decreased by 0.5%. The following CZ-NACE activities were the main contributors to the rise in the industrial production: manufacture of basic metals and fabricated metal products, manufacture of electrical and optical equipment and manufacture of chemicals, chemical products and man-made fibres. Decreases were occurred only in manufacture of machinery and equipment, manufacture of leather and leather products, electricity, gas and water supply. Seasonally adjusted industrial production was somewhat lower by only 0.1% m-o-m (e.g. compared to March 2004).
Appreciation of total sales in industry was lower than industrial production growth. Sales in industry at constant prices were higher by 8.4% y-o-y . Manufacture of rubber and plastic products (together with the above mentioned industrial branches) was responsible for their high growth. Direct export sales rose by 9.8% really and their share in total sales stood at 47.5% at current prices. Industrial foreign-controlled enterprises raised their sales by 11.4% y-o-y and accounted for 73.0% of their direct exports sales. The decrease in number of employees in industry continued slowly (by 15.1 thousand, i.e. 1.3% y-o-y), labour productivity (sales per employee) was 9.8% up. Average monthly nominal wage amounted to CZK 16 903, which was up both nominally and really by 6.9% and 4.5% than in the last year. Lower growth of average monthly wage compared to labour productivity increase resulted in decrease of unit wage costs by 2.6%.
From January to April 2004 industrial production has grown by 9.3% y-o-y (after working days adjustment it was 8.7%), sales in industrial production were 8.5% up (after working days adjustment it was 7.9% up). The average number of employees in the industry fell by 1.6%, average monthly nominal wage increased by 8.1%, really by 5.7%. Labour productivity was 10.2% up as a result of it unit wage costs dropped by 1.9% y-o-y.
Construction
Compared to previous months, in April a growth rate of construction output accelerated yet, total construction output at constant prices increased by 62.4%, y-o-y. In accordance with the CZSO pre-calculation, approximately two thirds of this appreciation may have pre-invoiced construction work using reduced VAT, as April was the last month to have seen reduced VAT (except for housing construction). This high rate of construction output got reflected in the whole structure of construction work with the exception of housing construction and in all sizes of construction companies. Number of employees (in construction enterprises with 20+ employees) rose only by 2.9% y-o-y. The average monthly wage reached CZK 17 600 and increased rising by 8.2% nominally and 5.8% really
From January to April 2004 the construction output increased by 31.6% (after working days adjustment it was 31.2%) y-o-y . This high growth rate was influenced by lower comparative basis as well, because the construction output increased by 0.6 % only compared to the equivalent period of the last year. In enterprises with 20+ employees labour productivity increased by 28.6% y-o-y, average monthly wage rose by 8.6% nominally and 6.1% really. Unit wage costs were 15.6% down.
External trade
In April a growth rate of external trade accelerated again. External trade turnover grew markedly before the accession to the EU, current price exports and imports were 24.7% and 25.7% up y-o-y . The high dynamics of exports were affected by rise in exports of telecommunications and sound-recording and recording equipment and computers. High growth of exports after inward processing (+more than 40%) contributed to this increase. A marked growth was observed in imports of investment machinery (metalworking machinery, general industry machinery and equipment and power-generating machinery and equipment). Imports of non-ferrous metals, pharmaceutical and medical products increased, too. Trade balance deficit reached CZK 10.8 bn, which was by CZK 3.2 bn more than in April 2003. The balance deteriorated in trade in chemicals and related products (a CZK 4.6 bn increase in deficit), semi finished products and materials, food and animals. On the contrary, the trade balance improved in trade in machinery and transport equipment. In terms of territory, most responsible for the trade balance worsening was trade with China, Japan, Russia and Korea. On the other hand, results improved in trade with the United States, Thailand, Turkey, Hungary and Austria. Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, both exports and imports grew faster in US dollars, and slower in terms of euros. Both seasonally adjusted exports and imports were by 10.5% and 16.6% up m-o-m .
From January to April both exports and imports rose by 15.5% and 15.1%. Trade balance deficit reached CZK 11.7 bn; compared to the same period of the last year it did not change too much (descent by CZK 0.1bn only).
MAY 2004
Consumer prices
In May, consumer prices level increased by 0.4% m-o-m (i.e. compared to April). Prices of goods stagnated, while prices of services increased by 1.3%. Increase of VAT taxes on hotels and restaurants services, domestic services and personal care services imposed in May mainly affected increase of prices; raise of consumer taxes (which came into forces since January) on tobacco and tobacco products also influenced prices to a certain extent. Prices for automotive fuels rose by 5.7%, for instance prices for Natural reached the highest level since September 2001. On the other hand prices for electricity, gas and telecommunication services decreased owing to decrease in VAT. Prices for food were 0.4% down. The y-o-y increase in prices affected increase in prices of goods by 1.2% and prices of services by 5.4%. Accelerated growth rate displayed in most parts of the consumer basket; prices for hotels and restaurants services were 7.0% up, prices for automotive fuels were 11.0% up, prices for cigarettes were 5.4% up and prices for personal care services were 18.2% up. 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 1.2% in May and since December 2003 has increased by approximately 0.2 percentage points per month.
Unemployment
At the end of May 2004 the registered unemployment rate (source: Ministry of Labour and Social Affairs of the Czech Republic) reached 9.92% (males 8.63%, females 11.56%), it was less than 10% last time even in November 2003. It was 0.28 percentage points less m-o-m, but in comparison to the equivalent period of the last year it was 0.48 percentage point more. At the end of May 2004 labour offices registered 520.4 thousand of unemployed job applicants; compared to May 2003 the lessening of their count was higher. Especially number of unemployed males has decreased. At the end of May 2004 there were by 23.7 thousand job applicants more compared to May 2003; this difference is decreasing continually since February. Number of job opportunities increased by 2.3 thousand (compared to May 2003). At the end of May there was the equal number of applicants per one job opportunity, which was a year ago (11.7).
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