Selected economy indicators - November 2007

In October, the y-o-y growth of industrial production volume was affected by a high production for exports, volume of construction output rose due to building construction. Monthly values of both, exports and imports were record-breaking, volume of exports rose faster than imports, the trade balance ended in the highest October surplus. In October was more one working day.
In November, level of consumer prices was higher than in October, the y-o-y prices growth was the highest one since August 2001. The m-o-m registered unemployment rate further dropped in November. 
OCTOBER 2007
 
Industry
 
In October, volume of industrial production accelerated to 8.4% (in September it was 1.3%). After working days adjustment the gain was 6.6%. In total, manufacturing of means of transport and equipment supported this growth with 3.9 p.p. (growth in the branch by 20.3%), by next 2.6 p.p. manufacturing of electrical and optical appliances (growth in the branch by 15.3%), and by 1.3 p.p. manufacturing and servicing of machines and equipment (growth by 20.1%). The most negative impact (1.3 p.p.) had a drop in production of coke, refining of petroleum by more than 40% (planned outage time of processing equipment). Manufacturing of chemicals, drugs, chemical fibres, manufacturing of basic metals, metallurgical and metalworking products also sizeably reduced. The m-o-m seasonally adjusted industrial production rose by 2.0%; the trend has been growing by 0.5%.
 
In October, sales in industry were higher by 9.3% in terms of real comparison y-o-y (after working days adjustment by 7.6%), direct export sales increased by 12.8%. Industrial foreign-controlled enterprises increased its sales in industry by 11.8% and direct export sales by 13.4%. Its share in total sales was 60.7% at current prices; in October 2006 it was 59.7%. 
 
An average number of employees ¹ in industry increased by 1.1%, (i. e. by 12.2 thousand people) y-o-y; their average monthly wage amounted to CZK 21 608 in October was up both nominally and really by 9.3% and 5.1%, respectively, higher than a year ago. Labour productivity in industry was up by 7.4%.
 
The y-o-y value of new orders in selected industrial branches enlarged by more than one fifth in October, value of new foreign orders enlarged by 13.9%.
 
In January to October, as against the equal period of 2006, the volume of industrial production enlarged by 8.9%. In terms of real comparison, sales in industry enlarged by 10.1%, direct export sales jumped by 14.3%. Number of employees in industry increased by 2.0%, an average monthly wage increased nominally by 7.8% and really by 5.3%.  The y-o-y labour productivity grew up by 7.3%.
 
Construction
 
In October, the y-o-y volume of construction output was by 3.5% higher (at constant prices), after working days adjustment by 2.0%. In construction enterprises (with 20+ employees) construction work affected the y-o-y gain by 3.2% new constructions, reconstruction, modernization in building construction (effect by 4.4 p.p.) and work on services and maintenance (0.3 p.p.) and work abroad (0.6 p. p.). On the contrary, structural engineering had a negative effect (by -1.8 p.p.) and other work (-0.3 p.p.). The seasonally adjusted construction outputs were really by 0.9% higher m-o-m in October, the trends were up by 0.6% m-o-m.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 2.2% as against October 2006. The y-o-y average monthly wage reached CZK 22 922 and increased by 8.6% and by 4.4% in real terms. Labour productivity per employee increased by 5.5% compared to October 2006 level.
 
In October, planning and building control authorities granted by 18.6% y-o-y less construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 32.8 bn and compared to October 2006 increased by 9.9%. Financially high-priced new dwellings constructions, reconstructions and modernization of sewage water treatment plants had a most favourable effect to this growth. Planning and building authorities permitted 5 111 new dwellings, which was almost by one third more than in October 2006.
 
In January to October construction output was in real terms by 6.8% higher than a year ago. Number of employees in construction enterprises (with 20 + employees) dropped by 1.4%; so labour productivity per employee increased in such enterprises by 7.3%. An average monthly wage increased nominally and really by 8.8% and 6.3%, respectively. Whilst planning and building control authorities granted less by 12.3% y-o-y, orientation value of permitted dwellings reduced only by 1.7%.
 
External trade
 
In October, the y-o-y value of exports enlarged by 13.6%, imports by 11.5%, from the historical point of view, monthly values of exports and imports were record-breaking (all in current prices). Due to the appreciation of the Czech koruna against EUR and especially against USD, exports and imports rose faster in terms of dollars and euros than in Czech koruna. The trade balance ended in a record-breaking October surplus of CZK 8.6 bn, which was by CZK 4.8 bn more than a year ago. The trade balance with EU 27 member states was active by CZK 38.9 bn, with non-EU 27 states passive by CZK 30.3 bn. Increase in trade of raw materials, mineral fuels, industrial consumer goods, machines and machinery products and means of transport, foods and live animals had a positive effect on trade balance. On the other hand worsening in trade of chemical products, semi-finished products and materials had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted exports decreased by 2.7%, whilst imports jumped by 5.0%. Trends of exports increased by 0.7%; trends of imports came up by 0.6%.
 
In January to October, volume of both exports and imports enlarged by 16.4% and 14.6% y-o-y. The y-o-y trade balance surplus amounted to CZK 75.8 bn sustained approximately twice level in comparison to last year, to the end of October was by CZK 37.3 bn higher on a year ago.
 

NOVEMBER 2007
 
Consumer prices
 
In November, m-o-m consumer prices level increased noticeable by 0.9 %; prices of goods increased by 1.4%, prices of services did not change. This rise was brought on increase in prices of food and non-alcoholic drinks by 4.0% (for example prices of common bakery products increased by 24.6%, bread by 16.2%, edible oils by 17.5%, eggs by 12.6%, cheeses by 7.9%), which was the highest from January 1993. Prices in transport increased with above-average paces due to jump in prices of fuels. The y-o-y growth of consumer prices accelerated to 5.0% (by 1.0 p.p. more than in October 2007), for the last time the inflation was higher in August 2001. The y-o-y development of prices level increase influenced most prices of foods and non-alcoholic drinks (1.7 p. p.) dwellings, water, energy, fuel (1.4 p. p.), alcoholic drinks and tobacco (1.3 p.p.). The double – digit prices growth of foods and non-alcoholic drinks (by 10.4%) was higher more than 11 years ago. In total, prices of goods increased by 6.1%, prices if services by 3.4%.
 
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, was by 2.5% higher in November, so that by 0.3 p. p. higher than in October.
 
In November 2007, the y-o-y increase of harmonised index of consumer prices reached 5.1% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.0%).
 
Unemployment
 
The registered unemployment rate in November 2007 dropped by 0.2 p.p. as against October and to the end of the month arrived to 5.6%. The females’ unemployment rate was down faster (by 0.2 p.p.) to 7.1%, the unemployment rate of males only by 0.1 p.p. to 4.5%. As against end of November 2006 was by 1.7 p. p. lower. Labour offices registered 341.4 thousand job applicants at the end of November; the lower one was in August 1998 last time. As against end of November 2006 number of job applicants reduced by almost one fifth. As against last month, number of unemployed freshly graduated students and adolescents reduced, its share on the total number of unemployed people dropped by 1.0 p.p. to 6.9%, last year reached 7.7%. This year, for the first time, number of job opportunities dropped to 141.3 thousands m-o-m. Number of applicants per one job opportunity was 2.4 at the end of November; compared to November 2006, when it was 4.4 persons.
 
This press release was not edited for language.
 

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¹ Starting January 2007, the Czech Statistical Office proceeded to publish data on number of people employed in the short-time statistics of industry. 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 second mentioned indicator comprises also number of agency workers who are not involved into the total number of employees. The y-o-y data comparability is guaranteed.
² Employees working in construction enterprises through personnel agencies are not involved into average registration number of employees

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