Selected economy indicators - September 2004
Selected economic indicators
Publication Date: 12. 11. 2004
Product Code: r-1101-04
AUGUST AND JANUARY- AUGUST 2004
Industry
The y-o-y industrial production index reached 108.7% or 106.5% after working days adjustment (there was one more working day in August 2004 compared to August 2003). Industrial production raised most in the production of capital goods (by 12.4%) and consumer durable goods (by 8.9%). The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture of basic metals and fabricated metal products, manufacturing n. e. c. (office furniture of metal, toys of plastics) and manufacture of other non-metallic mineral products. Decreases in the industrial production were recorded for manufacture of leather and leather products.
The m-o-m seasonally adjusted industrial production was 1.8% down (compared to July 2004).
Sales in industry at constant prices were higher by 9.9% y-o-y (or 7.6% after working days adjustment). Direct export sales rose by 11.5% really and their share in total sales of industrial enterprises stood at almost 44% (at current prices). Industrial foreign-controlled enterprises raised their sales by 12.3% y-o-y. The decrease in number of employees in industry was getting dropped by August, compared to the last year there were less 4.4 thousand employees, i.e. 0.4%. Labour productivity (sales per employee) increased by 10.3%. In August the average monthly nominal wage amounted to CZK 16 863, which was up both nominally and really by 8.6% and 5.0% than last year. As a result unit wage costs decreased by 1.5%.
January to August the y-o-y industrial production grew by 10.6% (after working days adjustment by 10.3%). Sales in industry rose by 10.0%, direct export sales rose by 14.0% being compared to the same period. The average number of employees in the industry fell by 0.9%, average monthly nominal wage increased by 7.4%, really by 4.6%. Labour productivity was 11.1% up; the y-o-y unit wage costs dropped by 3.3%.
Construction
The y-o-y volume of construction output in August at constant prices expanded by 9.4% (after working day adjustment it was by 8.1%). Data monitoring the development of construction output stabilized and got back into common level (after three months of decrease and slightly increase in construction outputs due to changes of VAT taxes). Volume of construction work in civil engineering, especially in housing construction, expanded faster. The y-o-y number of employees (in construction enterprises with 20+ employees) rose by 4.4%. In August the average monthly wage reached CZK 17 905 rising by 8.8% nominally and really by 5.2% y-o-y. The m-o-m construction outputs (i.e. compared to July 2004) climbed by 1.4% after working days adjustment.
January to August 2004 the y-o-y construction outputs increased by 12.8%. In enterprises with 20+ employees labour productivity increased by 8.8 %, average monthly wage rose by 7.2% nominally and 4.4% really. Unit wage costs were 1.5% down.
External trade
In August the y-o-y volume of external trade increased, current prices exports and imports were up by 29.0% and 22.6%, respectively. Due to the appreciation of the Czech koruna against the US dollar and against the euro, external trade grew faster both in terms of US dollars then in the Czech korunas . Higher growth rate of the trade balance favourably affected trade balance results. The trade balance ended in a deficit of CZK 2.4 bn, which was the lowest August deficit since 1995 (compared to August 2003 it was by CZK 4.6 bn lower). Trade with EU member states reached surplus CZK 17.0 bn, trade with non-EU states ran deficit CZK 19.4 bn. Favourable development occurred mainly in trade in machinery and transport equipment, on the contrary the balance deteriorated considerably in trade of semi-finished products and materials and industrial production products. The m-o-m seasonally adjusted exports and imports were down by 1.2% and 6.3%, respectively.
January to August 2004 the y-o-y exports and imports increased by 23.0% and 20.1%, respectively. The trade deficit reached CZK 17.9 bn only; compared to the equal period of the last year dropped by 18.6%.
SEPTEMBER 2004
Consumer prices
In September the m-o-m consumer prices level decreased by 0.8% (i.e. compared to August). In average prices of goods went down by 0.3%, prices of services by 1.5%. On the whole it can be regarded as a seasonal decrease of prices in this month, which was influenced mainly by the cut in prices in recreational stays both abroad and domestic alike last year; in this year the fall in prices of food and non-alcoholic beverages (fruit, vegetables, potatoes), and drop in prices in transport (lower prices of cars, automotive fuel and reduced price in pupils’ tickets in passenger transport by railway). The y-o-y price growth by 3.0% (i.e. by 0.4 p.p. lower than in August) affected prices in education, restaurants and canteens, post and telecommunication services (due to changes in VAT rate in public telecommunication services and restaurants and canteens). In total, prices of goods put up by 1.2% and prices of services by 6.1%. 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 2.2% in September.
Compared to the last year the Q1 average price level was by 2.3% higher, in Q2 was by 2.6% higher and in Q3 was up 3.2%.
Unemployment
Since July 2004 Ministry of Labour and Social Affairs of the Czech Republic has published the registered unemployment rate according to the new methodology , which is keeping with ways of calculation in EU-members states (ILO methods used in Eurostat). In accordance with it unemployment reached 9.1% at the end of September 2004. Labour offices registered almost 489 thousand of unemployed job applicants being able to take a job. According to the former methodology , the registered unemployment rate was 10.1% and kept on the same footing as in the last year. During September it untraditionally declined by 0.1 p.p. However, unemployment rate was negatively affected by increase in number of freshly graduated students (almost 6.9 thousand in September). Their y-o-y share in total unemployment rate fall by 1.4 p.p. (11.0% at the end of September). Number of job possibilities decreased by 1.4 thousand (compared to the last month) and amounted to 47.1 thousand. Number of applicants per one job opportunity was 11.3 compared to September in the last year when it was 11.7.
The quarterly average of registered unemployment rate (according to the former methodology) has fallen down from 10.73% in Q1 to 10.13% in Q2 and in Q3 reached 10.12%.
This press release was not edited for language.