Selected economy indicators - September, October 2008

 
In August were less two working days as against last year, which also affected the y-o-y development of both industrial production volume and volume of construction outputs that both decreased, as against last year.  The August trade balance ended in a surplus for the first time since 1993, by the sizeable y-o-y drop of exports and a imports volume.
The September consumer prices level was lower than in August, the y-o-y prices growth accelerated. The registered unemployment rate did not change m-o-m, number of registered job applicants slightly increased. 
AUGUST 2007
 
Industry
 
In August, the y-o-y volume of industrial production was by 2.6% lower, after working days adjustment was up by 1.7%. In total, the drop contributed manufacturing of food and beverages, tobacco products by  -1.3 p.p. (fall in the branch by 13.8%); by - 0.6 p.p. manufacturing of basic metals, metallurgical and metalworking products (fall in the branch by 4.5%) and by - 0.5 p.p. manufacturing and servicing machines and equipment (fall by 7.2%). Other ten branches showing drop in production had a weaker impact. Only growth in manufacturing of electrical and optical appliances, chemicals, means, drugs and chemical fibres, manufacturing of means of transport and transport equipment, production of coke, petroleum refining had a positive effect. The seasonally adjusted industrial production increased by 0.5% in comparison to the July level; the trends have been growing up by 0.1%.
 
In August, sales in industry went down by 2.8% in terms of real comparison y-o-y, direct export sales went up by 1.6%. Industrial foreign-controlled enterprises decreased its sales in industry by 1.2% and direct export sales increased by 3.2%. Its share in total sales was 56.7% at current prices; in August 2007 it was 57.1%. 
 
An average number of employees in industry decreased by 0.5%, (i.e. by 5.7 thousand people) this year for the first time, their average monthly wage amounted to CZK 21 420 in August was up nominally by 4.2% on a year ago, really went down by 2.1%. Labour productivity ¹ dropped by 2.3%.
 
In August, the y-o-y value of new orders in selected industrial branches decreased by 10.0% , value of foreign orders by 8.5%. 
 
In January to August, as against the same period of the last year volume of industrial production was by 5.0% higher. Sales in industry rose by 4.8% and direct export sales by 7.8% in terms of real comparison. Number of employees in industry increased by 1.4%, an average monthly wage increased nominally by 9.2% and really by 2.1%. Labour productivity ¹ rose by 2.9% y-o-y.
 
Construction
 
In August, the y-o-y volume of construction output was by 1.2% lower, in terms of real comparison, after working days adjustment went up by 1.7%. The m-o-m seasonally adjusted volume of construction output decreased by 0.1% really in August 2008; the trends were up by 0.4%.
 
  In construction enterprises (with 20+ employees), the y-o-y lessening of construction work by 1.7% was affected by a decisive way volume of work in building construction, whose volume has been remaining under the last year level for several months, especially in new constructions. Structural engineering and work on repairs and maintenance attenuated the drop in construction output.
 
Number of employees ^[2] in construction enterprises (with 20+ employees) went down by 1.4% as against August 2007. The y-o-y average monthly wage reached CZK 23 015 and increased by 4.1%, and by 2.3% went down in real terms. Labour productivity per employee decreased by 0.3% compared to August 2007 level.
 
In August, planning and building control authorities granted by 4.2% y-o-y more construction permissions to be constructed. The approximate value of permitted constructions arrived at CZK 36.2 bn, and in comparison to August 2007 jumped by 2.8%. In new constructions the approximate value dropped only in residential buildings, in category changes of completed constructions dropped markedly in other construction. Planning and building authorities permitted 3 725 new dwellings, which was less by 27.2% on a year ago.
 
In January to August, the y-o-y volume of construction output was by 1.2% higher in terms of real comparison than in first eight months of 2007. Number of employees ² in construction enterprises (with 20+ employees) dropped by 0.6% and labour productivity per employee increased in these enterprises by 1.6%. The average monthly wage increased nominally by 11.4% and really by 4.1%. Number of building permissions granted by planning and building control authorities went up by 8.2% y-o-y, the approximate value of permitted constructions increased by 15.3%.
 
External trade
 
In August, the y-o-y volume of both exports and imports sizeably decreased, which was affected partially by a lower number of working days. Volume of exports dropped by 8.1% and imports by 10.1% (all in current prices). Machines and means of transport had the highest proportion in exports and imports (51.0% and 38.3%, respectively). Since 1993 the trade balance ended in a surplus of CZK 3.6 bn, which was by CZK 3.8 bn higher on a year ago. The trade balance with EU 27 member states was active by CZK 37.0 bn, with non-EU 27 states passive by CZK 33.4 bn. Improvement in trade of machines and means of transport had a positive effect on the trade balance. On the contrary, the deficit in trade in mineral fuels deepened.  According to preliminary data, m-o-m seasonally adjusted exports increased by 0.3%, imports decreased by 6.8%. The trend indicates a growth in exports by 0.1% and a drop in imports by 0.5%.
 
In January to August, volume of exports enlarged by 4.0% and imports by 2.8%; the paces of both were by more than 12.0 p.p. lower on a year ago. The trade balance surplus amounted to CZK 76.4 bn increased, which was by CZK 20.1 bn higher than in first eight months 2007.
 
 
SEPTEMBER 2008
 
Consumer prices
 
In September, m-o-m consumer prices level decreased by 0.2%; prices of goods increased by 0.1%, prices of services decreased by 0.6%. The drop in prices in September affected especially prices development in holiday and culture, foods, non-alcoholic drinks and public traffic. For instance prices in package holidays, fuel and roaming services dropped, tobacco products, clothing and footwear, solid fuel had a reversed effect; during the first school month prices in education increased by 3.0%. The y-o-y growth of consumer prices by 6.6% was by 0.1 p.p. higher than in previous month. The y-o-y development of prices level increase influenced most the prices development of housing, water, energy and fuel (2.8 p.p., prices growth by 10.6%), food and non-alcoholic drinks (1.3 p.p., prices growth by 8.3%), alcoholic drinks and tobacco (0.8 p.p., prices growth by 9.0%) and health care delivery (0.6 p.p., prices growth by 32.1%).  In total, prices of goods jumped by 5.5% and prices of services by 8.3%.
 
In Q1 the y-o-y consumer prices increased by 7.4%, in Q2 by 6.8%, in Q3 by 6.6%, of which the Q1 growth of administratively regulated prices amounted to 23.8%, and in next quarters identically to 21.5%. The market prices growth slowed down gradually from 3.6% to 3.3%, and to 3.1% in Q3.
 
 
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 6.4% in September and was by 0.3 p.p. higher than in August. According to social groupings, living costs (hypothetical rental fee is not involved) in households of employees jumped by 6.0%, in households with children and minimal incomes by 7.7%, in households of pensioners by 8.1%.
 
In September 2008, the y-o-y increase of average harmonized index of consumer prices reached 6.4% in the Czech Republic (according to a flash estimate of Eurostat, the HICP in Euro-zone was 3.6%).
 
Unemployment
 
In September, the registered unemployment rate remained at the same level like in previous two months and at the end of the month amounted to 5.3%, the unemployment rate of females was 6.9% and men 4.1%. As against September 2007, the registered unemployment rate was by 0.9 p.p. lower, this difference has constantly been decreasing in the course of this year. Labour offices registered 314.6 thousand job applicants, which was by 2.2 thousand higher than a month ago, as against end of September 2007 decreased by 50.4 thousand. Only a growth of unemployed freshly graduated students and adolescents by 9.2 thousand affected entirely the m-o-m gain. As against preceding month, share in total number of unemployed people increased by 2.9 p.p. to 9.2% and remained for the forth time above the level of the last year, this time by 0.6 p.p.. Number of job opportunities decreased by more than 11 thousand to 139.6 thousand. Number of applicants per one job opportunity at the end of September was only 2.3; compared to September 2007, when it was 2.7 persons.
 
In Q1 the registered unemployment rate was in average 6.0%, in Q2 5.2%, in Q3 5.2%.
 

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