Selected economy indicators - November 2006

The y-o-y growth of both, volume of industrial production and volume of construction output, expanded in October, was affected by the higher number of working days. Value of both exports and imports reached the record-breaking level; volume of exports enlarged faster than imports, the trade balance ended in surplus.
In November, the y-o-y level of consumer prices decreased by 0.1%, compared to October; but its y-o-y growth accelerated. The registered unemployment rate continued dropping.
OCTOBER 2006

Industry

In October the y-o-y volume industrial production reached 12.8%, after working days adjustment it was by 8.7%. In October were two more working days on a year before. Favourable development (in total contribution by 3.2 p.p.) was recorded in manufacturing of electrical and optical devices and appliances (increase by 21,4%), manufacture of means of transport and equipment (increase by 17,1%), manufacturing of basic metals, metallurgical and metalworking products (by 1.6 p. p., growth by 12.5%). The reverse effect had manufacture of coal products and crude oil processing. The m-o-m seasonally adjusted industrial production increased by 1.2%, the trend has concurrently been growing up by 0.7%.

In October sales in industry were higher by 13.7% (at constant prices) y-o-y, direct export sales increased by 16.0%. Industrial foreign-controlled enterprises increased its sales in industry by 20.9% and its share in total sales was 59.6% at current prices. Direct export sales there were up by 19.3%.

Number of employees in industry increased by 0.7%, (i. e. by 8.4 thousand people) y-o-y; labour productivity (sales per employee) was by 12.9% up. The y-o-y average monthly wage amounted to CZK 19 615 was up both nominally and really by 7.7% and 6.3 %, respectively. Labour productivity grew faster than increase of average wages; therefore unit wage costs decreased by 4.6%.

The y-o-y value of new orders in selected industrial branches sizeably increased by 19.6% in October. Value of new foreign orders enlarged by 21.3%.

In January to October, volume of industrial production expanded by 10.7%. In terms of real comparison sales in industry jumped by 11.0%, direct export sales were up by 11.7%. By increased number of employees in industry an average monthly wage enlarged nominally and really by 6.2% and 3.4%. Labour productivity went up by 9.7%, the y-o-y unit wage costs dropped by 3.2%.

Construction

In October the y-o-y volume of construction output was higher by 7.1%, after working days adjustment by 3.8% (at constant prices). In construction enterprises (with 20+ employees), volume of new constructions, reconstructions and modernization in civil engineering (by 4.6 p. p.) and construction work abroad (2.2 p. p.) affected this growth most favourably. Number of employees in construction enterprises (with 20+ employees) dropped by 0.6% as against October 2005. The y-o-y average monthly wage reached CZK 21 144 and increased nominally by 9.4% and by 8.0 % in real terms. Labour productivity increased by 7.8% per employee, owing to unit wage costs increased by 1.5%. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased really by 0.3 %, the m-o-m trends grew by 0.6%.

In October, planning and building control authorities granted by 3.6% y-o-y more dwellings to be constructed that was for the first time since January 2005. The approximate value of newly permitted constructions arrived at CZK 29.8 bn was by 27.6% more on a year before. The planning and building authorities permitted expensive modernization and reconstruction of railway route sections and repair and improvements of regional roads, expensive construction projects such as sports halls, public entertainment buildings and warehouses. On the other hand, the decrease was recorded for environmental constructions. It was permitted 3 867 new dwellings, which is by 541 more than in October 2005.

In January to October according to preliminary data, the y-o-y volume of construction output enlarged by 5.7% in real terms. Labour productivity increased by 5.3% in enterprises with 20+ employees, number of employees grew by 0.4%, an average wage increased nominally by 7.0% and by 4.2% in real terms. Unit wage costs rose by 1.6%.

External trade

In October the y-o-y value of both exports and imports enlarged by 19.8% and 19.2%, respectively (all at current prices), its value was record-breaking in history of the Czech Republic. 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 4.4 bn, i. e. more by CZK 1.6 bn than a year ago. Trade balance with EU member states was active by CZK 31.3 bn, with non-EU states passive by CZK 26.9 bn. Trade in machinery and transport equipment, favourably influenced the y-o-y figures; trade balance deficit also decreased in trade in mineral fuels (for the first time since November 2004). According to preliminary data, m-o-m seasonally adjusted exports decreased by 0.1% whilst imports jumped by 2.8%. Trends of both exports and imports came up.

In January to October y-o-y exports and imports expanded by 14.6 % and 14.7%, respectively. The y-o-y surplus of the trade balance amounted to CZK 44.1 bn was higher by CZK 3.9 bn on a year before.


NOVEMBER 2006

Consumer prices

In November, m-o-m consumer prices decreased by 0.1%. Prices of goods remained unchanged as against last month and prices of services dropped by 0.2%. This drop was brought on decrease in prices of automotive fuel and in prices in ‘recreation and culture’ was caused mainly by an off-season reduction in prices of domestic recreational stays and recreational stays abroad. The y-o-y growth of consumer prices accelerated to 1.5% from 1.3% in October. The y-o-y growth in consumer prices affected markedly price changes in housing, water, energy and fuel (by 1.1 p.p.), then prices fluctuation of foods and non-alcoholic beverages, hotels and restaurants (all 0.2 p.p.). Prices of goods increased by 0.3% y-o-y, prices of services by 3.0%.

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, amounted to 2.6% in November that was by 0.1 p. p. less than in October.

In November 2006, the y-o-y increase of harmonised index of consumer prices reached 1.0% in the Czech Republic (according to a flash estimate, the HICP in Euro-zone was 1.8%).

Unemployment

The registered unemployment rate in November 2006 decreased by 0.1 p. p., as against October. At the end of the month reached 7.3%; it decreased by 1.1 p. p. as against end of November 2005. The females’ unemployment rate was 9.0%; the unemployment rate of males was 6.0%. Labour offices registered 432.6 thousand job applicants at the end of November, which is approx. less by 7.2 thousand people as against October 2006. Share in number of unemployed freshly graduated students and juveniles to the total number of unemployed people were down and arrived at 7.7% (decrease by 0.9 p. p. as against last month); last year reached 8.1%. Number of job opportunities went down; in November dropped to 99 thousand. Number of applicants per one job opportunity was 4.4 at the end of November; compared to November 2005, when it was 9.3 persons.

Harmonised unemployment rate ¹ has been published by Eurostat to obtain an international comparison, reached 6.7% in the Czech Republic in November and was by 1.0 p. p. lower than a year ago.

This press release was not edited for language.
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¹ This estimation
- comprises integrated methodology in the EU (processed by Eurostat)
- is based on the quarterly level of unemployment rate (according to ILO) and selected surveys of labour forces (SSLF) proceeded in households
is based on trends of the registered unemployment rate (Ministry of Labour and Social Affairs of the Czech Republic), then the monthly distribution is being carried out

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