Services - 4. quarter of 2005

 
Sales in observed kinds of services were up by 2.9 % y-o-y at constant prices and the seasonally adjusted sales grew by 3.3 %. The year 2005 had one working day less than the year 2004.

Sales in retail trade in total rose by 2.6 %, in transport and post by 2.0 % and in selected market services by 5.1% year-on-year.
 
The retail sales grew by 4.2% when compared to the previous year, the development was mainly due to the above the average growth of November sales. Sales of non-food goods grew faster (+4.9%) than sales of food (+3.2%). The growth of sales of non-food goods ranged between 4.2% and 5.4% in individual months of Q4 2005, the development of sales of food was more diverse and ranged from 1.6% to 5.3%. In the food segment, in terms of weight more important non-specialised stores with food, beverages or tobacco predominating, saw a faster growth of sales (+3.3%) than specialised stores with food, beverages or tobacco (+2.6%). In the non-food segment, sale of textiles, clothing and footwear in specialised stores grew the most (+12.2%). An above the average growth, when compared to the all-year result, was recorded in all main assortment types of stores except stores with pharmaceutical and medical goods, cosmetic and toilet articles and sale via mail order houses. A decrease in all quarters occurred in the sale of second hand goods in stores, which is in terms of volume insignificant.
 
The trend in the automotive segment, where sales dropped by 0.2%, was determined by a low growth of sales for the sale of motor vehicles (+1.7%) and the drop of sales for the sale of automotive fuel (-3.4%). This development started in November and continued in December.
In  hotels and restaurants, total sales fell by 1.1%, of which in hotels and camping sites by 1.3% and in restaurants, bars and canteens by1.0%.

Sales in transport in Q4 fell by 0,4% year-on-year. The decrease in sales in transport via railways (-4.9%) and increase in transport by road (+4.1%) confirms the long-term trend of transport capacity transfer between these two transport segments. The growth in water transport (+34.9%) was affected among other things by the sale of automotive fuel sold by some of the important enterprises as their auxiliary activity. The lowest growth (only +2.5%) in the last ten quarters recorded air transport in connection with marked changes in the market with non-scheduled air transport. The drop of supporting and auxiliary transport activities (-5.5%) was due to a marked decrease of goods sold by some enterprises as their auxiliary activity.
Sales in post and telecommunications kept also in Q4 their high dynamics of growth (+7.2%) due to the development in telecommunications, where sales grew by 8.7%. On the other hand in post and courier services sales fell by 5.6%.

 
Sales in computer and related activities in Q4 2005 rose by 7.4%. The development in this CZ-NACE activity was very diverse; while sales in hardware and software consultancy and supply increased markedly (+11.1%), data processing, database activities and also maintenance and repair of office, accounting and computing machinery and other computer related activities did not reach the level of 2004 (year-on-year drop by 11.0% and 5.8% respectively).
Sales in other business activities have been continuously growing since Q2 2003; in Q4 2005 the increase was 4.7%. Some of the activities grew by a double-digit rate (industrial cleaning +12.3%, labour recruitment +10.9%). Already two quarters in succession sales of architectural and engineering activities grew markedly (+ 8.4% in Q4). On the other hand following a long-term growth sales for legal, accounting, bookkeeping and auditing activities stagnated.
After a two-quarters moderate growth, sales in other service activities dropped again by 3.5%.
Development in some of the divisions in 2005 – particularly in the first half-year – had still been affected by consequences of changes, which took place in 2004. These concerned mainly changes of VAT rates and the accession of the Czech Republic to the European Union. The second half of the year was affected by the rise of petroleum product prices. A closer connection with economic structures of the EU showed in the last few years in the fact, that big international enterprises moved their service, logistic and administrative centres to the Czech Republic. The development of retail trade was still influenced by the formation of big shopping centres but not to the same extent as in the beginning of the millennium. Lately, in the internal market there have been characteristic property movements between big enterprises operating in the Czech Republic, some of the important businesses have already left the Czech market others are considering it. Even though the competitive environment keeps low prices in most of the segments, there have also been cases of increasing prices – for example in postal services, data processing, hotels and restaurants. 
The complex of all effects reflected in the total growth of sales in 2005, which increased by 3.1% year-on-year at constant prices, being 0.1 percentage points less than in 2004. Development of individual activities varied considerably. Retail trade and also most of the transport activities – except auxiliary activities - showed growth, whereas in hotels and restaurants and other business activities a declining tendency prevailed.
Sales in retail trade incl. the automotive segment rose year-on-year at constant price in all of the quarters of 2005, least in Q2 and most in Q4, in total by 3.7% in the year 2005. The biggest share in growth of sales (+29.6%) had non-specialised stores with food, beverages or tobacco predominating (for detailed assessment see News Releases – Retail trade I- December 2005).
Sales in hotels and restaurants dropped by 4.1%; in restaurants, bars and canteens by – 5.0% and in hotels and camping sites by –1.7%. In 2005 sales decreased in all of the observed size groups. The decrease in the division occurred after the VAT change in May 2004, which raised the VAT rate in restaurants.
 
Following a revival in 2003 and 2004, transport saw a slight decrease in 2005 (-0.8%). The weakest result was reached in Q2 (-2.6%) due to a high base in 2004 caused by changes in the charging of VAT.  This development was recorded by all of the important activities except air transport, which grew least in Q4. Accumulated year-on-year results of individual transport activities varied. Sales in transport via railways fell by 4.0% as a result of a long-term decrease of performance in freight transport. Transport by road, supported by growing foreign trade and construction, continued in its growth, which began in Q1 2003. Supporting and auxiliary activities were since Q2 significantly affected by the drop of sales of goods, which some enterprises sell as their auxiliary activity.
Following a decline in 2004 post and telecommunications continued in its dynamic growth from 2003 and kept this high rate through the whole of 2005. The development of post and telecommunications was determined mainly by telecommunications, which did well, among other things, thanks to the development of Internet and data services. The fall of post and courier activities, which started in the middle of 2004, even more deepened in 2005 (-5.3%).
 
Market services as a whole were in 2005 (mainly in the first half of 2005) the fastest growing activities among the observed services.
Sales in computer and related activities as a whole rose by 5.8% year-on-year, which is the highest growth since 2001. Sales grew during most of the year; they only dropped in Q2 due to a high comparing base. This development was contributed to mainly by, in terms of volume the most important group, hardware and software consultancy and supply (index 109.3). A long-term drop of sales continued in other activities.
Sales in other business activities grew by 3.6%. While sales in the first half-year grew only by 1.7%, in the second half-year the growth rate markedly increased to 5.2%. Most of the observed activities showed a year-on-year growth. The only exception were architectural and engineering activities, where sales did not reach the level of 2004. This was particularly due to the development in the first half-year (-11.9%) as in the second half year sales rose by 8.6%. Among the most dynamically developing activities belongs labour recruitment, even though when compared to the previous years the growth slowed down (+6.8%).
Sales in other business activities fell year-on-year. During 2005 the development varied. While in the first half-year sales exceeded the 2004 level (by +0.4%), in the second half-year they dropped   (-0.8%). Total decrease has been influenced in the long term by the trend of hairdressing and other beauty treatments and funeral activities; a permanent moderate growth occurs in washing and dry-cleaning of textiles.
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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