Services - 4th quarter of 2009

In Q4 2009, seasonally adjusted, calendar and working day adjusted sales in services dropped by 1.2%, quarter-on-quarter, at constant prices and by 8.6%, year-on-year. Not seasonally adjusted sales fell by 7.6%, y-o-y. The biggest sales drop was reported for administrative and support service activities and the total result was most contributed to by sales drop in professional, scientific and technical activities.
In 2009 sales in services dropped by 9.3%, the sales growth was reported only for postal and courier activities and information service activities.
In Q4 2009, sales in services ¹⁾ with seasonal, calendar and working day adjustment decreased by 1.2%, quarter-on-quarter, at constant prices and by 8.6%, y-o-y, (Q4 2008 had one working day less). Not seasonally adjusted sales dropped by 7.6%, y-o-y. The drop came mainly from professional, scientific and administrative activities (-2.7 p.p.) and from transportation and storage (-1.5 p.p.). The biggest drop was reported for motion picture activities (-25.0%) in information and communication division.

Year-on-year development of not seasonally adjusted sales in services broken down by CZ-NACE division:

- sales in transportation and storage dropped by 5.5%, which was, however, compared to the average for previous four quarters, lower. On decline were sales in all transport sections, the biggest sales drops were reported for water transport and air transport (-17.7% and -17.6%, respectively). Smaller drop, showing however more marked influence on total results, was reported for land transport and transport via pipelines (-4.9%) and warehousing and support activities for transportation (-6.4%). Growth was registered only in postal and courier activities (+12.4%);

- sales in accommodation and food service activities continued to fall (-10.0%). Compared to the previous quarter of 2009 the drop slightly decelerated (the most marked slowdown was reported for November). Sales in accommodation dropped by 11.4% and sales in food and beverage service activities by 9.3%;

- sales in information and communication were by 5.0% down. A drop was reported for majority of observed branches. The biggest decrease was recorded in motion picture activities (-25.0%) and in programming and broadcasting activities (-24.9%) although the biggest contribution to the total drop of sales came from activities in computer programming, consultancy and related activities (-2.7 p.p.) and telecommunications (-1.7 p.p.). Sales in information service activities and publishing activities grew, by contrast, by 9.7% and 2.6%, respectively;

- sales in real estate activities dropped by 4.8% while similar development was recorded in renting and operating of own or leased real estate and in real estate agencies (-4.9% and -4.5%, respectively);

- sales in professional, scientific and technical activities ²⁾ dropped by 10.4%. Like in Q3 the biggest sales decrease was reported for advertising and market research (-22.7%) and other professional, scientific and technical activities (-21.2%). By contrast, the smallest drop was reported for legal and accounting activities (-4.2%) and architectural and engineering services (-3.1%);

- sales in administrative and support service activities ³⁾ repeatedly reported the biggest decline among the observed services (-11.8%). A double-digit fall was reported for sales of employment placement agencies for the fifth quarter already, compared to Q4 2008 they dropped by 23.6%. Sales in administrative and support service activities were 6.7% down, sales in cleaning services dropped by 6.8%, insecurity and investigation activities by 10.4 % and sales in tour operator activities by 10.9%. The second biggest fall (-13.5%) was reported for rental and leasing activities, however, the sub-group leasing of motor vehicles showed, as the only one, a moderate sales increase (+0.5%).

In the year 2009, sales ¹⁾ in services fell by 9.3% at constant prices, y-o-y. The most market drop was reported for Q3 (-10.7%), the smallest drop was observed in Q4 (-7.6%). The results were influenced mainly by the most important division in terms of volume - transportation and storage (sales dropped by 9.5%, contribution to the total drop –2.9 p.p.).

Not seasonally adjusted sales in services broken down by CZ-NACE division in the year-on-year comparison developed as follows:

- drop of sales in transportation and storage (-9.5%) came mainly from land transport and transport via pipelines (sales dropped by 11.2%, contribution -6.0 p.p.) and from warehousing and support activities for transportation (sales drop by 8.1%, contribution –2.9 p.p.). Sales growth was reported only for postal and courier activities (+4.7%);

- in accommodation and food service activities sales dropped by 11.1%; the biggest drops were recorded in Q1, the smallest decreases in Q4. Bigger sales drop was reported for hotels and similar accommodation (-14.1%). In restaurants and mobile food service activities sales fell by 9.6%;

- sales in information and communication decreased by 4.6%. The only information service activities recorded a year-on-year growth (+8.2%). Sales in telecommunications dropped by 2.9%, sales in computer programming, consultancy and related activities were 4.9% down, in publishing activities by 6.2%, in programming and broadcasting activities by 20.6% and in motion picture production by 22.1%;

- sales in real estate activities decreased by 2.1%. Sales recorded by real estate agencies were on the fall over the whole year, sales in renting and operating of own or leased real estate showed no changes over the year, while in the second half-year recorded a drop;

- sales in professional, scientific and technical activities ²⁾ were by 12.7% down. All groups recorded a drop, from legal and accounting activities (-6.7%) to advertising and market research (-19%);

- sales in administrative and support service activities ³⁾ were down 13.3%. Over the whole year sales of employment placement agencies were falling to reach only 63.2% of sales in 2008. Among other groups a double-digit drop was recorded for tour operator activities (-11.9%), the smallest drop of sales was reported for services to building and landscape activities (-4.0%) including mainly cleaning activities. Only sales in renting and leasing of motor vehicles were higher compared to 2008.

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Note
Methodological note :
For the purpose of New Releases, services include the following CZ-NACE categories – Transportation and storage (H), Accommodation and food service activities (I), Information and communication (J), Real estate activities (L), Professional, scientific and technical activities – without Scientific research and development and Veterinary activities (M without 72 and 75), Administrative and support service activities without Landscape service activities (N without 81.3).
For the purpose of News Releases section M – Professional and scientific and technical activities does not include CZ-NACE 72 – Scientific research and development and CZ-NACE 75 – Veterinary activities.
For the purpose of New Releases section N – Administrative and support service activities does not include CZ-NACE 81.3 – Landscape service activities.

Contact: sections L, M and N - Marie Boušková, t el. 274052935, e-mail: marie.bouskova@csu.gov.cz
sections H, I and J - Alena Hellerová, tel: 274052921; e-mail: alena.hellerova@csu.gov.cz
Data source: CZSO direct survey in enterprises
End of data collection: 4 February 2010
End of data processing: 9 February 2010
Quarterly data for most of sections (save for section J) since 2000 (for y-o-y indices since 2001) are available in time series.
( http://www.czso.cz/csu/czso/slu_mts2005 )
Data for Q4 2009 are preliminary; final data for separate quarters will be known not later than in June 2010.