Selected economy indicators - May, June 2008

Industrial production came back to the marked growth in April, after the stoppage in March, volume of construction outputs went up tardily, compared to growth of industrial production. This year, monthly values of exports and imports were the highest ones; the trade balance surplus was higher as against last year. In April were more two days than in April 2007.
The May consumer prices level was higher than in April, the y-o-y prices growth remained at the April level. The registered unemployment rate decreased in May, it was sizeably lower than by the end of May 2007.
APRIL 2007
 
Industry
 
In April, the y-o-y volume of industrial production was by 12.2% higher, after working days adjustment industrial production was higher by 8.3%. In total, this growth contributed fast growing production of means of transport by 4.5 p.p. (growth in the branch by 21.2%), next 3.2 p.p. manufacturing of electrical and optical appliances (growth in the branch by 24.4%); 1.4 p.p. manufacturing of basic metals, metallurgic and metalworking products (growth by 11.5%), and 1.2 p.p. manufacturing and servicing of machines (growth by 16.9%). Only production of food and beverages and tobacco products decreased. The seasonally adjusted industrial production increased by 7.1% in comparison to March level; the trends have been growing up by 0.7%. The results in March and in April were affected by an interannual change of working days number (among others shifting of Easter).
 
In April, sales in industry went up by 12.8% in terms of real comparison y-o-y (after working days adjustment were by 8.6% higher), direct export sales by 15.7%. Industrial foreign-controlled enterprises increased its sales in industry by 14.5% and direct export sales by 17.5%. Its share in total sales was 59.5% at current prices; in April 2007 it was 59.8%. 
 
An average number of employees in industry increased by 2.1%, (i. e. by 24.9 thousand people), their average monthly wage amounted to CZK 22 615 in April was up nominally by 10.5% on a year ago, really by 3.5%. Labour productivity ¹ rose by 9.8%.
 
In April, the y-o-y value of new orders in selected industrial branches increased by 6.5 % , value of foreign orders  by 4.0%. 
 
In January to April 2008 volume of industrial production was by 7.4% higher on a year ago. Sales in industry rose by 7.1% and direct export sales by 9.0%. Number of employees in industry increased by 2.4%, an average monthly wage increased nominally by 11.3% and really by 3.8%. Labour productivity rose by 3.9%. ¹
 
Construction
 
In April, the y-o-y volume of construction output was by 2.0% higher (at constant prices), after working days adjustment dropped by 0.8%. The lower gain was affected among others by a high April 2007 basis, when construction expanded its performance by 17.4%. In construction enterprises (with 20+ employees) the y-o-y volume of construction work by 1.6 % was markedly affected by new construction, reconstruction and modernization in structural engineering (effect by 1.3 p.p.) that increased by 4.4%. The increase in work on reconstruction and maintenance, other work and work abroad also were recorded. The seasonally adjusted construction outputs were really by 0.1% lower m-o-m in April 2008, the trends were up by 0.2%.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 0.5% as against April 2007. The y-o-y average monthly wage reached CZK 23 039 and increased by 11.3%, and by 4.2% in real terms. Labour productivity per employee increased by 2.0% compared to April 2007 level.
 
In April, planning and building control authorities granted by 16.2% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 31.4 bn, and in comparison to April 2007 dropped by 4.2%. Planning and building authorities permitted 3 571 new dwellings, which was more by 12.7% than in April 2007.
 
In January to April the y-o-y volume of construction output was by 3.4% higher in terms of real comparison. In construction enterprises (with 20+ employees) number of employees went up by 0.1%, labour productivity increased by 2.9%, the average monthly wage increased nominally by 13.0% and really by 5.4%.
 
External trade
 
In April, the y-o-y value of both exports and imports enlarged by 12.6% and 11.1% respectively (both in current prices), after the swing in March. The monthly value of exports and imports were the highest in this year; machines and means of transport had the largest proportion in exports and imports (54% and 42.1%, respectively). The trade balance ended in a surplus of CZK 8.3 bn, which was by CZK 3.4 bn higher on a year ago. The trade balance with EU 27 member states was active by CZK 40.4 bn, with non-EU 27 states passive by CZK 32.1 bn. Improvement in trade of machines, means of transport, semi-finished goods, materials, foods and living animals had a positive effect on the trade balance. Drop in trade of mineral fuels affected sizable higher import of natural gas. According to preliminary data, m-o-m seasonally adjusted exports enlarged by 1.4%, imports by 9.3%. The trend component went down by 0.8% in exports and rose by 0.4% in imports.
 
In January to April, volume of exports enlarged by 7.4% and imports by 8.2%, the dynamics of both, exports and imports was lower on a year ago. The y-o-y trade balance surplus amounted to CZK 41,3 bn was by CZK 2,5 bn lower.
 
 
MAY 2008
 
Consumer prices
 
In May, m-o-m consumer prices level increased by 0.5%; prices of goods increased by 0.5%, prices of services increased by 0.3%. The prices increase in May affected higher prices of fuels by 3.9%, when price of oil reached the historical maximum and price of petrol Natural 95 was the highest since October 2005. Prices of food, non-alcoholic beverages and health care increased by higher paces than average ones. The y-o-y growth of consumer prices 6.8% was identical with that in the previous month. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.6 p.p., prices growth by 9.9%), food and non-alcoholic drinks (1.7 p.p., prices growth by 10.6%), alcoholic drinks and tobacco (0.8 p.p., prices growth by 9.0%). Despite the fact that prices in health care delivery increased by 28.9%, its effect was only 0.6 p.p. In total, prices of goods jumped by 6.1% and prices in services by 8.0%.
 
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 5.0% in May and was by 0.3 p.p. higher than in April. According to social groupings, living costs in households of employees jumped by 4.8%, in households with children and minimal incomes by 6.1%, in households of pensioners by 6.3%.
 
In May 2008, the y-o-y increase of average harmonized index of consumer prices reached 6.8% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.6%).
 
Unemployment
 
The registered unemployment rate in May 2008 decreased by 0.2 p.p. as against April 2008 and arrived to 5.0% to the end of May. Both, the females’ unemployment rate and unemployment rate of males decreased by 0.2 p.p. to 6.4%, and 4.0%, respectively. As against end of May 2007 the registered unemployment rate was by 1.4 p.p. lower. Labour offices registered 302.5 thousand job applicants at the end of May, which was by 13.6 thousand lower than a month ago, as against end of May 2007 number of job applicants reduced by 80.1 thousand people. As against previous month, number of unemployed freshly graduated students and adolescents dropped, its share in the total number of unemployed persons dropped by 0.6 p.p. to 5.5% and, at the end of May 2007 reached 5.6%. For the first time number of job opportunities lessened to 151.3 thousand. Number of applicants per one job opportunity at the end of May was only 2.0; compared to May 2007, when it was 3.2 persons.
 
This press release was not edited for language.
 

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¹ Labour productivity is defined as a proportion of index of sales in industry  (at constant prices) to index of number of people employeed and people working through agencies
² Employees working in construction enterprises through personnel agencies are not involved into average registration number of employees

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