Selected economy indicators - October, November 2008

 
In September were more three working days as against last year, which affected the y-o-y development of both industrial production volume and volume of construction outputs. By the sizeable y-o-y growth of exports and imports volume of the September trade balance ended in a surplus.
The October consumer prices level remained at the same level like in September, the y-o-y prices growth decelerated. The registered unemployment rate dropped m-o-m, number of registered job applicants slightly decreased.
  
SEPTEMBER 2008
 
Industry
 
In September, the y-o-y volume of industrial production was by 9.6% higher, after working days adjustment was up by 3.4%. In total, the growth contributed by 2.9 p.p. fast growing production of electrical and optical appliances (growth in the branch by 17.5%), by further 2.0 p.p. manufacturing of coke, petroleum refining (growth by 105.4%, as a result of production plan lay-off in the last year) and by 1.7 p.p. manufacturing of means of transport and transport equipment (growth by 7.8%). The biggest negative impact –0.3 p.p. had a drop in manufacturing and distribution of electric power, natural gas and water by 4.9%. The seasonally adjusted industrial production increased by 0.9% in comparison to the August level; the trends have been growing up by 0.2%.
 
In September, sales in industry went up by 8.9% in terms of real comparison y-o-y, direct export sales went up by 11.0%. Industrial foreign-controlled enterprises increased its sales in industry by 8.1% and direct export sales increased by 10.3%. Its share in total sales was 59.2% at current prices; in September 2007 it was 61.0%. 
 
An average number of employees in industry were under the last-year-level for second month, in September decreased by 0.9% (i.e. by 10.1 thousand people). Their average monthly wage amounted to CZK 21 841 in September was up nominally by 8.6% on a year ago, really went up by 2.0%. Labour productivity ¹ jumped by 10.2%.
 
In September, the y-o-y value of new orders in selected industrial branches decreased by 2.7%, value of foreign orders by 7.8%. 
 
In January to September, as against the same period of the last year volume of industrial production was by 5.5% higher. In individual quarters the growth fluctuated from 5.6% in Q1 to 6.1% in Q2 and 4.7% in Q3. Sales in industry rose by 5.2% and direct export sales by 8.2% in terms of real comparison. Number of employees in industry increased by 1.1%, an average monthly wage increased nominally by 9.2% and really by 2.1%. Labour productivity ¹ rose by 3.7% y-o-y.
 
Construction
 
In September, the y-o-y volume of construction output was by 9.2% higher, in terms of real comparison, after working days adjustment went up by 4.4%. The m-o-m seasonally adjusted volume of construction output increased by 0.8% really in September 2008; the trends were up by 0.4%.
 
  In construction enterprises (with 20+ employees), the y-o-y increase of construction work by 8.6% was affected by a decisive way volume of work on structural engineering that compensated lack of building construction volume. Especially volume of work on repairs and maintenance and other work increased, whilst volume of work abroad lessened. Number of employees ² in construction enterprises (with 20+ employees) went down by 0.2% as against September 2007. The y-o-y average monthly wage reached CZK 24 073 and increased by 10.8%, and by 3.9% went up in real terms. Labour productivity per employee increased by 8.9% compared to September 2007 level.
 
In September, planning and building control authorities granted by 4.0% y-o-y less construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 34.6 bn, and in comparison to September 2007 jumped by 36.9%, this growth was faster in category changes of completed constructions (by 56.0%) than in category of new buildings (by 29.0%). Planning and building authorities permitted 4 072 new dwellings, which was more by 2.3% on a year ago.
 
In January to September, the y-o-y volume of construction output was by 2.3% higher in terms of real comparison than in first nine months of 2007. Whilst in Q1 it increased by 4.0% y-o-y, in Q2 dropped by 1.8% and in Q3 came back to the growth (by 4.9%). In the course of Q1 to Q3, the y-o-y basic construction outputs (BC) increased by 5.2 %. Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.5% and labour productivity per employee increased in these enterprises by 2.6%. The average monthly wage increased nominally by 11.3% and really by 4.1%. Number of building permissions granted by planning and building control authorities went up by 6.6% y-o-y, the approximate value of permitted constructions increased by 17.4%.
 
External trade
 
In September, the y-o-y volume of both exports and imports increased, which was affected partially by a higher number of working days. Volume of exports enlarged by 5.1% and imports by 6.8% (all in current prices). Machines and means of transport had the highest proportion in exports and imports (52.3% and 40.8%, respectively). Similarly like in previous three years the trade balance ended in a surplus of CZK amounted to 10.9 bn, which was by CZK 2.8 bn lower on a year ago. The trade balance with EU 27 member states was active by CZK 45.7 bn, with non-EU 27 states passive by CZK 34.8 bn. The deficit in mineral fuels trade and industrial consumer goods trade had a negative impact on on the trade balance. On the contrary, the surplus in trade in semi-finished goods and materials increased. According to preliminary data, m-o-m seasonally adjusted exports increased by 1.8%, imports by 9.8%. The trend indicates a growth in exports by 1.1% and a in imports by 0.6%.
 
In January to September, volume of exports enlarged by 4.1% and imports by 3.3%, the paces of both were by more than 12.0 p.p. lower on a year ago. The trade balance surplus amounted to CZK 87.2 bn ased, which was by CZK 17.2 bn higher than in first nine months 2007. Similarly like in previous years the surplus in individual quarters has consequently been decreasing, in this year from CZK 33.0 bn in Q1 and CZK 32.6 bn in Q2 to CZK 21.7 bn in Q3. Whilst the Q1surplus was lower than last year, during following two quarters was higher on a year ago.
 
 
OCTOBER 2008
 
Consumer prices
 
In October, m-o-m consumer prices level did not change when prices increase of goods by 0.2% compensated the same prices decrease of services. In October especially prices of clothing and footwear increased (higher prices of a new collection of winter clothing and footwear), living costs, water, energy and fuel (prices increase of natural gas and heat energy) and alcohol drinks and tobacco (tobacco products). For instance prices of automotive fuel, new cars and package holidays decreased. The y-o-y growth of consumer prices by 6.0% was by 0.6 p.p. lower than in previous month and was the lowest one in this year. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.9 p.p., prices growth by 11.3%), food and non-alcoholic drinks (1.0 p.p., prices growth by 5.9%), alcoholic drinks and tobacco (0.9 p.p., prices growth by 9.4%) and health care delivery (0.6 p.p., prices growth by 32.4%).  In total, prices of goods jumped by 4.7% and prices of 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 6.6% in October and was by 0.2 p.p. higher than in September. According to social groupings, living costs (hypothetical rental fee is not involved) in households of employees jumped by 6.2%, in households with children and minimal incomes by 7.9%, in households of pensioners by 8.3%.
 
In October 2008, the y-o-y increase of average harmonized index of consumer prices reached 5.7% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.2%).
 
Unemployment
 
In October, the registered unemployment rate decreased as against previous month by 0.1 p.p. and at the end of the month amounted to 5.2%, the unemployment rate of females was 6.7% and men 4.1%. As against end of October 2007, the registered unemployment rate was by 0.6 p.p. lower, this difference has constantly been decreasing in the course of this year. Labour offices registered 311.7 thousand job applicants, which was by 2.9 thousand lower than a month ago, as against end of October 2007 decreased by 37.1 thousand. This m-o-m drop was affected by more than 80% decrease of unemployed freshly graduated students and adolescents by 2.4 thousand. Its share in total number of unemployed people decreased by 0.7 p.p. to 8.5% as against last month and was above the level of October of the last year by 0.6 p.p. Number of job opportunities decreased by 9.4 thousand to 130.1 thousand and for the first time in this year was lower as against last year. Number of applicants per one job opportunity at the end of October was 2.4 that were the same like in October 2007.
 
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 employed 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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