Services - 2. quarter of 2005

 
Sales in observed kinds of services were up by 2.6% y-o-y at constant prices, the number of working days was by one higher than in the 2nd quarter of 2004. Working days adjusted and seasonally adjusted sales grew by 2.1%.
 
 
Not seasonally adjusted sales in retail trade total rose by 3.7%, in transport, post and telecommunications by only 0.9% and in selected market services by 0.8%.

The growth of retail sales in the 2nd quarter of 2005 was roughly the same as the average growth for last four quarters. Sales in non-specialised and specialised stores rose at a rate close to that in the 1st quarter of 2005 (+2.9% and +3.3%, respectively). The highest increases in both store categories were reported in May (+5.0% and +5.7%, respectively). Retail sales were affected predominantly by sale of non-food goods (+3.4%) where the rate of growth accelerated compared to the 1st quarter of 2005. Nearly the same development was seen in sales of non-food goods in specialised and non-specialised stores (+3.4% and +3.7%, respectively). Considerably growing again was sale of textiles, clothing and footwear (+15.3%). Sale of pharmaceutical and medical goods, cosmetic and toilet articles rose by 9.3%, growing significantly especially in May and June. Stores selling food, beverages and tobacco recorded higher sales by 2.7% (both specialised and non-specialised), which was by 0.4 percentage points less than the average for last four quarters.
Sales in the automotive segment grew by 8.0%, particularly due to rising sale, maintenance and repair of motor vehicles by 10.1%, which was the highest figure since the 3rd quarter of 2003. According to the statistics of the Automotive Industry Association, first registrations of vehicles were up by 13.6% in the 2nd quarter of 2005, of which those of passenger cars, small utility cars and trucks grew, while registrations of buses and coaches dropped. Sale of automotive fuel rose by 4.2%.
Hotels and restaurants reported lower sales by 7.4%, down in both hotels (–5.7%) and restaurants, bars and canteens (-8.1%). The fall in hotels was caused by the high comparative base (the organisation of the World Ice Hockey Championship showed itself mainly in hotels in Prague and north-Moravia) and also by uncertain weather in May and June. Sales in restaurants, bars and canteens have been falling since the VAT Act was amended in May 2004, which enacted a higher VAT rate for catering services.
 
Sales in transport were down by 2.6% y-o-y in the 2nd quarter of 2005. The results for most modes of transport were affected by the high comparative base of April 2004. Lower sales in transport via railways (-6.5%) were due to a long-term decrease in outputs particularly of goods transport. Only a moderate growth of road transport could be connected with the less dynamic results of construction in comparison with the 2nd quarter of 2004. Increase in water transport (+42.2%) was influenced by better navigability of rivers in April and May than a year earlier and by the introduction of sale of automotive fuel as an auxiliary activity of some enterprises. Higher sales in air transport (+4.1%) were affected by extension of predominantly regular flights, while sales in non-regular transport dropped. The fall in supporting and auxiliary transport activities (-7.1%) was mainly due to lower sale of goods by some enterprises carried out as an auxiliary activity. The decrease in the growth rate of other services in transport was related to the removal of customs procedure in imports and exports of goods from and to the EU member states.
Sales in post and telecommunications increased due to the growth of telecommunications, which was high, just like in the 1st quarter of 2005 (+11.4%). The fall in sale of post services was even higher than in the 1st quarter of 2005, the sales index reached the lowest level since the 2nd quarter of 1998. The lower use of post services was probably affected by the price increase in February and by growing popularity of electronic and mobile communication.
 

 
Sales in computer and related activities dropped by 2.8% in the 2nd quarter of 2005, particularly due to the high comparative base in 2004. Nearly identical developments were recorded for maintenance and repair of office, accounting and computing machinery and database activities (indices 92.4 and 92.9, respectively). Sales were down also in the most important activity in terms of volume – software consultancy and supply.
Compared to the 1st quarter of 2005, the growth of other business activities slowed down slightly and reached 1.6%, which was affected by development in architectural and engineering activities and related technical consultancy where a fall of 13.8% was reported. Development in these activities was very differentiated during the quarter. Whereas sales in April markedly fell due to the high comparative base in 2004, they overshot the level of 2004 in May and June. Legal, accounting, bookkeeping and auditing activities and tax consultancy (+11.2%) became the most dynamically developing activity. Y–o-y increases were recorded in advertising, labour recruitment and provision of personnel and miscellaneous business activities.
The long-term falling trend in other service activities (predominantly of personal nature) was discontinued by a y-o-y growth of 1.6%. ^{1 1} CZ-NACE 50, 52, 55, 60, 61, 62, 63, 64, 72, 74, 93         – Services
CZ-NACE 50, 52, 55                                                     – Retail trade total
CZ-NACE 50, 52                                                          – Retail trade incl. automotive segment
CZ-NACE 50                                                                – Automotive segment
CZ-NACE 52                                                                – Retail trade
CZ-NACE 60, 61, 62, 63, 64                                          – Transport, post and telecommunications
CZ-NACE 72, 74, 93                                                     – Selected market services