Selected economy indicators - September 2007

In August, the y-o-y volume of industrial production decelerated, on the contrary volume of construction output after a two-months drop enlarged again. Despite higher growth paces of exports than imports also in the second holiday month the trade balance ended a moderate deficit.
In September, level of consumer prices was lower than in August, the y-o-y prices growth accelerated. The m-o-m registered unemployment rate reduced in September, number of graduates job applicants and adolescents increased 
AUGUST 2007
 
Industry
 
In August, the y-o-y volume of industrial production decelerated to 5.5% (in July it was 11,5%). In total, manufacturing of means of transport and equipment supported this growth by 1.7 p. p. (growth in the branch by 10.4%), manufacturing of electrical and optical appliances supported this growth with 1.6 p. p. (growth in the branch by 12.0%), by next 1.0 p. p. manufacturing of rubber and plastic products (growth by 17.7%). Drop in production of manufacturing of basic metals, metallurgical and metalworking products, chemicals, drugs, chemical fibres, manufacturing of coke, refining of petroleum had the most negative impact. The m-o-m seasonally adjusted industrial production decreased by 0.8%; the trend has been growing by 0.3%.
 
In August, sales in industry were higher by 7.0% in terms of real comparison y-o-y. Direct export sales increased by 7.9%. Industrial foreign-controlled enterprises increased its sales in industry by 10.2% and direct export sales by 7.6%. Its share in total sales was 58.0% at current prices; in August 2006 it was 56.4%. 
 
Number of employees ¹ in industry increased by 1.6%, (i. e. by 18.2 thousand people) y-o-y; their y-o-y average monthly wage amounted to CZK 20 857 in August was up both nominally and really by 7.2% and 4.7 %, respectively. Labour productivity was up by 4.7%.
 
The y-o-y value of new orders in selected industrial branches enlarged by 12.3% in August, value of new foreign orders enlarged by 12.9%. 
 
In January to August, as against the equal period of 2006, the volume of industrial production enlarged by 9.9%. Sales in industry enlarged by 11.1% in real terms, direct export sales jumped by 15.2 %. Number of employees in industry increased by 2.3%, an average monthly wage increased nominally by 7.9% and really by 5.7%. Labour productivity grew by 7.9% y-o-y.
 
Construction
 
In August, after two-months drop the y-o-y volume of construction output returned to a growth and was by 3.3% higher (at constant prices). In construction enterprises (with 20+ employees) construction work affected the y-o-y growth by 3.0% new constructions, reconstruction, modernization in building construction (effect of 4.2 p.p.) and work abroad (effect of 2.1 p.p.). On the contrary, structural engineering had a negative effect (by –1.6%), work on services and maintenance (-1.5 p.p.) and other work (-0,2%). The seasonally adjusted construction outputs were really by 1.4% higher m-o-m in August, the trends were up by 0.3% m-o-m.
 
Number of employees ² in construction enterprises (with 20+ employees) went down by 2.0% as against August 2006. The y-o-y average monthly wage reached CZK 22 113 and increased by 7.5% and by 5.0 % in real terms. Labour productivity per employee increased by 5.1%.
 
In August, planning and building control authorities granted by 17.0% y-o-y less construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 35.2 bn was less by 3.3% than in August last year. Newly built constructions comprised around 60% of approximate value of constructions. As a result of the high y-o-y base its approximate value in non-dwellings buildings reduced. On the contrary, the approximate value of other constructions (high-priced modernization and reconstruction of railways) and new dwellings rose markedly. Planning and building authorities permitted 5 116 new dwellings, which was almost by one fifth more than in August 2006.
 
In January to August construction output was in real terms by 8.9% higher than a year ago. Number of employees ² in construction enterprises (with 20 + employees) dropped by 1.2%; so labour productivity per employee increased in such enterprises by 9.3%. An average monthly wage increased nominally and really by 9.5% and 7.2%, respectively. Planning and building control authorities granted less by 11.0% y-o-y, orientation value of permitted dwellings reduced only by 0.6%.
 
External trade
 
In August, the y-o-y value of exports enlarged by 12.1%, which was the lowest growth in this year. Gain of imports by 11.7%, was the second lowest one (all at 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 deficit of CZK 0.6 bn, which represents the y-o-y improvement by CZK 0.5 bn. Since 1994 the deficit has been a characteristic trait for the August balance. Trade balance with EU 27 member states was active by CZK 29.6 bn, with non-EU 27 states passive by CZK 30.2 bn. Increase in trade of raw materials, mineral fuels, foods and live animals had a positive effect on trade balance, on the other hand worsening of trade machine and machinery products, means of transport, chemicals and industrial consumer goods had a negative effect on the trade balance. According to preliminary data, m-o-m seasonally adjusted both exports and imports decreased by 5.0%, and 1.2%, respectively. Trends of exports increased by 0.5%; trends of imports came up by 1.0%.
 
In January to August, volume of both exports and imports enlarged by 16.6% and 14.9% y-o-y. The y-o-y trade balance surplus amounted to CZK 55.1 bn was higher by CZK 27.8 bn more than a year ago, which is more than twice.
 
 
SEPTEMBER 2007
 
Consumer prices
 
In September, m-o-m consumer prices level decreased by 0.3%; prices of goods increased by 0.1%, prices of services dropped by 0.9%. This reduce was brought on decrease in prices of package holidays (by 16.1%), automotive fuels (by 0.9%), telecommunication and telefax services (by 0.6%), reduce of surcharges paid by patients for drugs with prescription by 1.7%. On the other hand net rental in dwellings with controlled rental and prices of solid fuel and prices for education went up (as the new school year started). The y-o-y growth of consumer prices accelerated to 2.8% (more by 0.4 p. p. than in August 2007). Development of prices level increase influenced most prices of alcoholic drinks and tobacco (prices of tobacco products increased by 27.4%), then in dwellings, water, energy, fuel (net rental increased in dwellings with control rental by 17.0%), food and non-alcoholic drinks. In total, prices of goods increased by 2.7%, prices if services by 2.9%. In Q1 consumer prices increased y-o-y by 1.5%, in Q2 by 2.4%, in Q3 by 2.5%.
 
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 2.0% in September, like in August.
 
In September 2007, the y-o-y increase of harmonised index of consumer prices reached 2.8% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 2.1%).
 
Unemployment
 
The registered unemployment rate remained in September 2007 dropped by 0.2 p.p. as against August and to the end of the month arrived to 6.2%; the females’ unemployment rate was down to 7.9%; the unemployment rate of males remained 4.9%. As against the end of September 2006 was by 1.6 p. p. lower. Labour offices registered 365.0 thousand job applicants at the end of September, which is approx. less by 7.8 thousand people than a month ago. As against end of September 2006 number job applicants reduced by almost one fifth. As every year, in September number of unemployed freshly graduated students and adolescents increased markedly. Their share on the total of unemployed people as against last month increased by 2.4 p.p. to 8.6%, and last year reached 9.2%. Number of job opportunities jumped again to the record-breaking level 137.4 thousand. Number of applicants per one job opportunity was 2.7 at the end of September; compared to September 2006, when it was 4.7 persons.
 
In Q1 the registered unemployment rate was in average 7.7%, in Q2 6.6%, in Q3 6.3%.
 
Harmonized unemployment rate ³ has been published by Eurostat to obtain an international comparison, reached 5.2% in the Czech Republic in September and was by 1.8 p.p. lower than a year ago.
 

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
³ 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