Selected economy indicators - May 2007

The y-o-y volume of industrial production has been growing the fourth month with double-digit paces in April. Volume of construction output had great gains even one month more. Growth paces of exports outstripped that of imports, for the first time the April trade balance ended in a surplus since 1994.
In May, the y-o-y level of consumer prices was higher compared to April, also the y-o-y growth of prices slightly decelerated. The registered unemployment rate has ceaselessly been decreasing since the end of January. 
APRIL 2007
 
Industry
 
Also in April, the y-o-y volume of industrial production enlarged with double-digit paces of growth by 14.0%, after working days adjustment by 11.5% (in April was more one working day compared to the last year). In total, manufacturing of means of transport and equipment supported this growth next 3.3. p. p. (growth in the branch by 16.4%),  manufacturing of electrical and optical appliances by next 2.7 p. p. (growth by 22.6%) and by 1.6 p. p. manufacturing and servicing of machinery and equipment (growth by 25.4%). On the other hand, the volume of production lessened in mining of energy producing raw materials, manufacturing of electricity, gas and water. The m-o-m seasonally adjusted industrial production decreased by 0.5%, the trend has been growing up by 0.8%.
 
In April, sales in industry were higher by 14.4% in terms of real comparison y-o-y, after working days adjustment by 11.9%. Direct export sales increased by 22.0%. Industrial foreign-controlled enterprises increased its sales in industry by 17.8% and direct export sales by 22.7%. Its share in total sales was 60.5% at current prices; in April 2006 it was 58.5%. 
 
Number of employees ¹ in industry increased by 2.5%, (i. e. by 28.6 thousand people) y-o-y; labour productivity (sales per employee) was by 10.8% up. The y-o-y average monthly wage amounted to CZK 20 414 was up both nominally and really by 8.8% and 6.1%, respectively. Labour productivity grew faster than increase of average wages; therefore unit wage costs decreased by 1.8%.
 
The y-o-y volume of new orders in selected industrial branches enlarged, its y-o-y value increased by 6.3% in April, value of new foreign orders enlarged by 13.6%. 
 
In January to April, as against the equal period of 2006, the volume of industrial production enlarged by 12.2%. Sales in industry enlarged by 13.1% in real terms, direct export sales jumped by 19.1%. Number of employees in industry increased by 2.4%, an average monthly wage increased nominally by 8.2% really by 6.3%. Labour productivity grew by 9.7%, followed by a drop of the y-o-y unit wage costs by 1.4%.
 
Construction
 
In April, the y-o-y volume of construction output was higher by 17.6% (at constant prices), after working days adjustment by 15.9%. High paces of growth in construction were affected not only by favourable weather but also by high demand on construction work. In construction enterprises (with 20+ employees), volume of new constructions, reconstructions and modernization in building construction (by 11.4 p. p.). The y-o-y volume of construction work abroad enlarged almost three-times and contributed to this growth by 3.3 p. p. In terms of real comparison the m-o-m seasonally adjusted construction outputs decreased really by 1.4 % in April, the m-o-m trends grew by 2.0%.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 1.0% as against April 2006. The y-o-y average monthly wage reached CZK 20 672 and increased nominally by 11.2% and by 8.5 % in real terms. Labour productivity per employee increased by 17.7% and unit wage costs decreased by 5.5%.
 
In April, planning and building control authorities granted by 8.1% y-o-y less construction permissions to be constructed. The approximate value of newly permitted constructions arrived at CZK 32.7 bn was by 41.2% higher on a year before. Building permissions of non-residential constructions (new plant halls including technologies) supported most this growth. Planning and building authorities permitted 3 169 new dwellings, which was by 10.2% less than in April 2006.
 
In January to April extraordinarily favourable meteorological conditions markedly affected the development in construction.  In total, the y-o-y construction output was by one-fourth higher, building construction most supported this favourable growth. An average registered number of employees in construction enterprises (with 20 + employees) dropped by 0.3%; so labour productivity per employee increased in such enterprises by 24.6%. An average monthly wage increased nominally and really by 12.5% and 10.5%, respectively. Planning and building control authorities granted less by 0.3% permissions to be constructed, estimated value of permitted constructions jumped by 29.3%.
 
External trade
 
In April, the y-o-y value of both exports and imports enlarged by 19.7% and 16.8%, 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 3.0 bn, which represents the y-o-y improvement by CZK 4.4 bn and since 1994 it is the first positive balance in April. Trade balance with EU 27 member states was active by CZK 27.9 bn, with non-EU 27 states passive by CZK 24.9 bn. Increase of trade surplus in machinery and transport equipment had a positive effect on trade balance y-o-y, on the other hand worsening of balance in semi-finished product and materials trade had a negative effect. According to preliminary data, m-o-m seasonally adjusted exports decreased by 1.4%, and imports by 0.1%. Trends of exports remained at the same level, like in previous month; trends of imports came up by 0.7%.
 
In January to April, volume of both exports and imports enlarged by 17.4% and 16.0%, respectively. The y-o-y trade balance surplus amounted to CZK 37.5 bn was higher by CZK 13.6 bn.
 
 
MAY 2007
 
Consumer prices ³
 
In May, m-o-m consumer prices level increased by 0.4%; prices of goods by 0.4%, prices of services by 0.2%. This jump was brought on further increase in prices of automotive fuel and tobacco products. Prices of seasonal prices of spa stays and net rental in housings with controlled rental also went up. Drop in prices of vegetable and potatoes had a reverse effect on the prices development. The y-o-y growth of consumer prices decelerated to 2.4% (less by 0.1 p.p. than in April 2007). This deceleration affected a development in prices of food, non-alcoholic drinks, postal and telecommunication services. The y-o-y growth in consumer prices again affected most prices development in housing, water, energy and fuel (net rentals paid for dwellings with regulated rentals increased by 11.4%), alcoholic drinks and tobacco. Prices level of goods increased by 2.1% y-o-y, prices of services by 2.6%.
 
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 2.1% in May, which was less by 0.1 p. p. than in April.
 
In May 2007, the y-o-y increase of harmonised index of consumer prices reached 2.4% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.8%).
 
Unemployment
 
The registered unemployment rate in May 2007, decreased by 0.4 p. p., as against April. At the end of the month the registered unemployment rate reached 6.4%; it decreased by 1.5 p. p. as against end of May 2006. The females’ unemployment rate was 8.0%; the unemployment rate of males was 5.2%. Labour offices registered 382.6 thousand job applicants at the end of May, which is approx. less by 20.3 thousand people as against last month. As against end of May 2006 it declined markedly by considerable 17.4%; it was lower last time in November 1998. Number of unemployed freshly graduated students and juveniles has been dropping faster and its share in total number of unemployed people went down by 0.6 p.p. to 5.6%, last year arrived to 6.2%. Number of job opportunities went up again to record-breaking level of 120 thousand. Number of applicants per one job opportunity was 3.2 at the end of May; compared to May 2006, when it was 5.7 persons.
 
This press release was not edited for language.
 

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¹ Starting January 2007, in short-time statistics of industry 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.
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.