Selected economy indicators - May 2005
Selected economy indicators
Publication Date: 14. 07. 2005
Product Code: r-1101-05
APRIL 2005
Industry
In April the y-o-y industrial production index reached 105.7%; the slowdown of its growth stopped. Industrial production rose in manufacture consumer durables, manufacture of intermediate goods and energy producing materials. The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture and servicing of machinery and equipment by 24.7%, manufacture of transport equipment by 15.7%, mining and quarrying, except of energy producing materials, manufacture of coke and petrol products (coincidently by 14.2%). On the other hand decreases were observed in manufacture of other non-metallic mineral products, leather and leather products. The m-o-m seasonally adjusted industrial production increased by 2.0%, the growth rate trend improved.
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Sales in industry at constant prices were higher by 9.0% y-o-y . Direct export sales increased by 19.3%, its share in total sales stood at almost more than one half at current prices. Industrial foreign-controlled enterprises (its influence on industry has still been rising) increased its sales in industry by 16.3% in real terms; direct export sales were up by 21.2%. In this month number of employees in industry increased by 0.9% compared to April 2004, labour productivity (sales per employee) was 8.0% up. The y-o-y average monthly wage amounted to CZK 17 582 was up both nominally and really by 3.8% and 2.2%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs increased by 3.9%.
The y-o-y volume of new orders in selected industrial branches increased almost by 4.3% at current prices in April , foreign orders (sharing two thirds of total amount of orders) jumped by 11.9%.
In January to April industrial production enlarged by 4.4%, compared to the equal period of the last year. Sales in industry rose by 6.8%, direct export sales were up by 12.7%. An average monthly nominal wage increased by 3.7% nominally and by 2.1% really, at employment growth in industry by 0.8%. As a result of labour productivity grew by 5.9%, y-o-y unit wage costs dropped by 2.1%.
Construction
In April the y-o-y construction output decreased by 29.5% at constant prices. The decrease occurred differentially in the whole structure of construction work as well as in all size groups of construction enterprises. The main reason for the reported drop in construction output was the high reference basis of April 2004 (when the y-o-y growth by 61.5% was affected by the prepared but not yet effective transfer of construction work to the basic VAT category before the accession of the CR to the EU). According to model calculations by the CZSO (and an adjustment of invoicing), construction output rose by 0.1% in April 2005. Number of employees in construction enterprises with 20+ employees rose by 3.9% in April, compared to the equal period of the last year. The average monthly wage reached CZK 18 297 and increased year-on-year by 3.5% nominally and by 1.9% in real terms. This resulted in drop of labour productivity almost by one third per employee. The m-o-m seasonally adjusted construction outputs increased by 1.4% in real terms, the growth trend went down m-o-m.
In January to April the total construction output lessened by 14.0% than a year ago. In construction enterprises with 20+ employees labour productivity dropped by 16.8%, the average monthly wage increased by 2.8% nominally and by 1.2% in real terms.
In April 2005 planning and building control authorities permitted 10 879 dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 25.1 bn in April, which was by 13.9% less at current prices than a year ago.
External trade
In terms of y-o-y comparison, in April growth paces of exports decelerated to 2.8%, while imports lessened by 7.5% at current prices. Paces of growth (especially in imports) were affected by the high comparative basis of April 2004, i. e. before the accession to the EU. The trade balance ended in a surplus of CZK 5.1 bn, which was by CZK 16.0 bn more than in April 2004, and was the most in the history of the Czech Republic. Trade balance with EU member states reached a surplus of CZK 25.1 bn, trade balance with non-EU member states ended in a deficit of CZK 20.0 bn. A favourable development was recorded in all commodity groups except mineral fuels, lubricants and related materials. The m-o-m seasonally adjusted exports and imports increased by 2.4% and 5.2%, respectively. The growth rate of the trend cycle component in both exports and imports jumped in April.
In January to April , in terms of y-o-y comparison both exports and imports jumped by 12,7% and 6.0%. The trade balance surplus was a typical feature for all preceding months and reached CZK 24.5 bn, which was by CZK 34.1bn more in comparison to first four months of the last year.
MAY 2005
Consumer prices
In May the m-o-m consumer prices level slightly increased by 0.2% (i.e. compared to April 2005); both prices of goods (by 0.1%) and services (by 0.2%) increased concurrently. Increase in the price level was influenced by a marked increase in prices of food and non-alcoholic beverages, prices of holiday stays with full services. In terms of y-o-y comparison, consumer prices growth decelerated to 1.3% (it was by 0.3 p. p. lower than in April). Due to VAT tax changes in prices of services (in May last year) the growth of prices in public catering, restaurants and hotels and personal care services lessened. As against May 2004 prices of medicaments, dwelling, water, energy, automotive fuel, restaurants, hotels and accommodation services raised most. On the other hand prices of footwear and clothing, housing equipment and repairs dropped. In total, prices of goods went up by 0.3%; prices for services were higher by 3.0%, compared to May 2004. 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 2.5% in May.
In May the y-o-y increase of harmonised index of consumer prices reached 0.9% in the Czech Republic (according to a flash estimate published by Eurostat, the HICP in Euro-zone was 2.0%).
Unemployment
The registered unemployment rate according to the new methodology reached 8.6% at the end of May, which was by 0.3 percentage points less m-o-m and by 0.2 percentage points less y-o-y. The females’ unemployment rate was 10.3%; the unemployment rate of males was 7.3%.
According to the former methodology , the unemployment rate was 9.4% at the end of May, which was by 0.4 percentage points less m-o-m and by 0.5 percentage point less y-o-y.
Labour offices registered 494.6 thousand at the end of May, which is by 18.0 thousand people less than the last month and by 25.9 thousand people less than in the equal period of the last year. The y-o-y difference has still been getting deeper this year. There were 463.2 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 6.6% (a year ago it was 8.1%). Number of applicants per one job opportunity was 8.7 at the end of May; at the end of May 2004 it was 11.7.
This press release was not edited for language.