Selected economy indicators - September 2005

AUGUST 2005

Industry

In August the y-o-y industrial production index reached 108.6%, mainly due to favourable development in manufacturing of transport equipment. The highest increases in the industrial production were observed in the following CZ-NACE activities: manufacture and servicing of machinery and equipment, manufacture of rubber and plastic products. Decreases were recorded in metallurgy, manufacturing and supply of electricity, gas and water, manufacturing of wood and wooden products. The m-o-m seasonally adjusted industrial production decreased by 1.7%, however the trend has concurrently been growing up.

In August sales in industry were higher by 10.3% y-o-y (at constant prices) direct export sales increased by 12.0%. Industrial foreign-controlled enterprises increased its sales in industry by 16.8% in real terms; direct export sales were up by 11.1%. Number of employees in industry increased by 0.3% (i. e. by 3.5 thousand people) compared to August 2004, labour productivity (sales per employee) was 9.9% up. The y-o-y average monthly wage amounted to CZK 18 040 was up both nominally and really by 6.8% and 5.0%, respectively. Labour productivity grew faster and outstripped increase of average wages. As a result unit wage costs decreased by 2.8%.

The y-o-y volume of new orders in selected industrial branches increased by 2.7% in August. Volume of new foreign orders enlarged by 2.9%.

January to August industrial production enlarged by 5.6% compared to the equal period of the last year. Sales in industry rose by 7.3% in real terms, direct export sales were up by 10.8%. An average monthly nominal wage increased by 4.4% nominally and by 2.8% really, at employment growth in industry by 0.4%. As a result labour productivity grew by 6.8%, y-o-y unit wage costs dropped by 2.3%.

Construction

The y-o-y construction output jumped by 6.7% in real terms in August. The growth of construction output accelerated particularly in the area of new construction in civil engineering. The volume of construction work on repair and maintenance of construction decreased. In August number of employees in construction enterprises (with 20+ employees) rose by 5.1%, as against August 2004. The average monthly wage reached CZK 19 083 and increased by 6.8% nominally and by 5.0% in real terms. Labour productivity went up by 1.1%, unit wage costs jumped by 5.7%. In terms of real comparison the m-o-m seasonally adjusted construction outputs increased by 2.1%.

January to August the y-o-y construction output was up by 1.0% in real terms. Labour productivity dropped by 2.3% in construction enterprises with 20+ employees; the average monthly wage increased by 3.8% nominally and by 2.2% in real terms.

In August 2005 planning and building control authorities permitted 14.4 thousand dwellings to be constructed. The approximate value of newly permitted dwellings reached CZK 36.9 bn that was by 18.5% more on a year before.

External trade

In terms of y-o-y comparison, in August the first monthly trade deficit amounted to CZK 1.9 bn was recorded (this figure was by CZK 1.4 bn better than in August 2004). The figures were considerably influenced by the inclusion of imported fighters Jas-Gripen valued at CZK 5.9 bn and by high prices of imported crude petroleum and natural gas. The y-o-y exports rose by 12.2%, imports increased by 10.8% (at current prices). These results were influenced by the low comparative basis in August 2004. Trade balance with EU member states reached a surplus of CZK 16.9 bn, trade balance with non-EU member states ended in deficit of CZK 18.8. The balance improved especially in trade in machinery and transport equipment, manufactured goods classified chiefly by material, crude materials, inedible, except fuels; on the other hand trade balance deficits worsened in trade in mineral fuels, chemicals and related products. According to preliminary data, m-o-m seasonally adjusted exports jumped by 1.7% and imports went up by 13.2%.

January to August, in terms of y-o-y comparison both exports and imports jumped by 9.1% and 3.7%. The trade balance surplus reached CZK 41.3 bn, in comparison to the deficit amounted to CZK 17.7 bn had been attained in the equal period of last year.

SEPTEMBER 2005

Consumer prices

In September, m-o-m consumer prices dropped by 0.3%; prices of goods went up by 0.6%, prices of services dropped by 1.4%. This decline in prices was caused by considerably lower prices of recreational stays abroad, or domestic recreational stays, respectively. Prices in food and non-alcoholic beverages kept on decreasing (mainly prices of fresh vegetable, potatoes, fruit of moderate climatic zone and sugar). The y-o-y rise in consumer prices was by 2.2%. Prices in housing (mainly prices of water, energy and natural gas) and prices in transport most influenced rise in prices. On the contrary, decrease of the price level was affected by prices of clothing and footwear, food and non-alcoholic beverages, furnishings, household equipment. In terms of y-o-y comparison, prices of goods increased by 1.4%, prices of services were higher by 3.6%. In the course of quarters of this year the y-o-y growth was as follows: in Q1 and Q2 alike it was 1.6%, in Q3 1.9%. 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 2.0% in September.

In September 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 2.5%).

Unemployment

The registered unemployment rate according to the current methodology reached 8.8% at the end of September and slightly decreased by 0.1 p. p. as against last month. In terms of y-o-y comparison it decreased by 0.3 p. p. The females’ unemployment rate was 10.9 %; the unemployment rate of males was 7.2%. In the course of quarters the registered unemployment rate was following: 9.64%, 8.84%, 8.81%.

Labour offices registered 503.4 thousand job applicants at the end of September, which is approx. by 26.8 thousand people less as against last month. There were 475.0 thousand of unemployed job applicants being able to take a job immediately, which was less by 13.8 thousand of persons as against September 2004. Share in number of unemployed freshly graduated students to the total number of unemployed people went up to 9.4% (increase by 2.0 p. p.); however last year it reached 11.0%. Number of applicants per one job opportunity was 9.0 at the end of September; at the end of September 2004 it was 11.3.

Harmonised unemployment rate 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 has been calculated by Eurostat to obtain an international comparison, reached 7.9% in the Czech Republic in September and was by 0.4 p. p. lower than a year ago. The unemployment rate in the Czech Republic is being in the long term under the EU-25 average value.

This press release was not edited for language.

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