Selected economy indicators - November 2005

OCTOBER 2005

Industry

A long-run growth in industry continued, In October the y-o-y industrial production index reached 106.3, mainly due to favourable development in manufacturing of transport equipment, manufacture of rubber and plastic products and manufacturing n.e.c. Decreases were recorded in mining and quarrying except energy producing materials, manufacturing of textiles and textile products, manufacture of coke, refined petroleum products, manufacturing and supply of electricity, gas and water. The m-o-m seasonally adjusted industrial production increased by 0.9%, the trend has concurrently been growing up.

In October sales in industry were higher by 10.0% y-o-y (at constant prices) direct export sales by 9.7%. Industrial foreign-controlled enterprises increased its sales in industry by 16.8% in real terms; direct export sales were up by 10.4%. Number of employees in industry increased by 0.2% (i. e. by 2.1 thousand people); after a drop during preceding two months y-o-y. Labour productivity (sales per employee) was 9.8% up. The y-o-y average monthly wage amounted to CZK 18 136 was up both nominally and really by 3.8% and 1.2%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 5.5%.

The y-o-y volume of new orders in selected industrial branches increased by 8.7% in October. Volume of new foreign orders enlarged by 5.0%.

As a result of IPP data for July adjustment (growth pace reduced from 11.2% to 7.2%) January to October industrial production enlarged by 5.4%, compared to the equal period of the last year. Sales in industry rose by 7.8% in real terms, direct export sales were up by 10.6%. An average monthly nominal wage increased by 4.5% nominally and by 2.7% really, at a slight drop of employment growth in industry by 0.1%. As a result labour productivity grew by 7.9%, y-o-y unit wage costs dropped by 3.2%.

Construction

Accelerating of construction output growth that was distinctive over last two month, continued also in October; total construction output was up by 13.8% y-o-y (at constant prices). The high growth of construction output was in particular affected by a quickly rising volume of construction work on civil engineering works (especially highways), partly on construction work on housing construction; finishing work on a number of projects of building and civil engineering. Number of employees in construction enterprises (with 20+ employees) rose by 5.6% as against October 2004. The average monthly wage reached CZK 19 282 and increased by 3.8% nominally and by 1.2% in real terms. Higher growth of labour productivity (by 6.7%) brought about decrease of unit wage costs by 2.7%. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased by 1.8 %, the trend went up.

January to October the y-o-y construction output was up by 3.5% in real terms. Labour productivity dropped by 0.2% in construction enterprises with 20+ employees; the average monthly wage increased by 4.1% nominally and by 2.3% in real terms. Unit wage costs enlarged by 4.3%.

In October 2005 planning and building control authorities permitted 13.301 dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 23.4 billion, which was less by 19.5% y-o-y (in October 2004 permits were granted for financially demanding construction of highways). The planning and building authorities permitted 3 326 dwellings to be constructed, which was by 38 dwellings more y-o-y.

External trade

In terms of y-o-y comparison, in October exports and imports were up by 5.0% and 2.7% (at current prices). Due to the development of exchange rate of the koruna, external trade rose faster in terms of both euros and dollars. The trade balance ended in a of CZK 1.8 billion in October, which was by CZK 3.5 billion better result on a year before; it was the seventh active monthly balance in the course of this year. Trade balance with EU member states was active by CZK 24.5 billion and with the non-EU states passive by CZK 22.7 billion. The improvement of the balance was most markedly contributed to by a CZK 7.3 billion increase in surplus of trade in machinery and transport equipment; a CZK 2.5 billion decrease in mineral fuels, chemical products, semi-finished products and related materials had an unfavourable impact. According to preliminary data, m-o-m seasonally adjusted exports jumped by 0.4% and imports went down by 5.2%. Both trend components rose.

January to October, in terms of y-o-y comparison both exports and imports grew by 8.8% and 4.4%, respectively. The trade balance surplus reached CZK 44.0 billion, in comparison to the deficit amounted to CZK 17.1 billion had been attained in the equal period of the last year.


NOVEMBER 2005

Consumer prices

In October, m-o-m consumer prices dropped by 0.3%; prices of goods went down by 0.3%, prices of services dropped by 0.2%. This decline in prices was caused by lower prices of automotive fuel and seasonally lower prices of package holidays and stays at spas. Prices of fruit and non-alcoholic beverages went up moderately. The y-o-y increase in consumer prices decelerated to 2.4%, especially prices in transport. A dominant increase in consumer prices was recorded for prices in postal services and communication, health and housing, water, energy and automotive fuel. Prices of goods rose by 1.7%, prices of services went up by 3.7% y-o-y. 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 1.9% in November, i. e. it was by 0.1 p.p. lower than in September and in October.

In November the y-o-y increase of harmonised index of consumer prices reached 2.2% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 2.4%).

Unemployment

The registered unemployment rate according to the current methodology reached 8.4% at the end of November and slightly decreased by 0.1 p. p. as against last month. In terms of y-o-y comparison it decreased by 0.5 p.p. The females’ unemployment rate was 10.2 %; the unemployment rate of males was 7.0%. Labour offices registered 490.8 thousand job applicants at the end of November, which is approx. by 26.9 thousand people less as against last month. There were 456.7 thousand of unemployed job applicants being able to take a job immediately, which was less by 22.5 thousand of persons as against November 2004. Share in number of unemployed freshly graduated students to the total number of unemployed people went down to 8.1% (fall by 0.7 p. p.); however last year it reached 9.3%. Number of applicants per one job opportunity was 9.3 at the end of November; at the end of November 2004 it was 10.3.


This press release was not edited for language.

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