Transport and communications - 4. quarter of 2007

In Q4, seasonally adjusted sales in 'transport, post and telecommunications' increased, quarter-on-quarter, by 0.1% at constant prices and by 4.1%, year-on-year. The same growth was recorded also for not adjusted sales, y-o-y, while sales in transport increased by 3.6% and in communications by 5.1%. Over a 58% contribution to aggregate growth came from 'supporting and auxiliary transport activities' and almost one third came from telecommunications. Over the whole year 2007 sales in transport increased by 7.9%, y-o-y, and in post and telecommunications by 5.2%.
In Q4 seasonally adjusted sales in transport and communications rose quarter-on-quarter by 0.1% at constant prices. Since the seasonal effects and effects caused by the number of working days were mutually compensated, seasonally adjusted and not seasonally adjusted sales grew identically (by 4.1%). 'Supporting and auxiliary transport activities1)' contributed by more than 58% to the total growth of transport and communications and almost one third came from telecommunications.

Transport:
Seasonally adjusted sales in 'transport' increased quarter-on-quarter by 0.2% at constant prices. The trend component grew for the corresponding period by 0.3 %, which was by 1.5 percentage point less than the average growth in the previous four quarters (Table 1). Year-on-year, with seasonal and calendar adjustments, the sales increased by 3.9 %, without adjustment the sales grew by 3.6 % (in Q4 2007 there was one working day more) which was the lowest increase for the last five quarters.

Graph 1
'Other land transport' from the aspect of contribution to total sales the most important type of transport increased in the observed quarter by 2.8% which was by 1.8 p.p. less than the average for the previous four quarters. Although the sales in 'air transport' grew as well the reported y-o-y growth by 2.4% was the lowest from the Q4 2006. Conversely, sales in 'inland water transport' followed due to favorable sailing conditions the high growth recorded in the previous quarter and increased by 15.9%. 'Transport via railways' is the only type of transport which in the observed quarter recorded a 4.8% drop, y-o-y, particularly due to the drop of outputs in freight transport.

The growing importance of the Czech Republic as a pro-export oriented and, in addition, transit country is reflected in the sales development in 'supporting and auxiliary transport activities' which recorded a 8.6% increase. However, a gradual growth rate decline in transport in total which might have a relation to the external trade development resulted also in the drop of sales growth in 'supporting and auxiliary transport activities' which in Q4 were by almost 10 p.p. down compared to the average of the previous four quarters. According to CZ-NACE classification of economic activities 'activities of travel agencies and tour operators', recording a 4.5% sales increase in the observed period, also form part of 'supporting and auxiliary transport activities'.

Post and telecommunications :
Seasonally adjusted sales in 'post and telecommunications' increased by 0.2 % quarter-on-quarter at constant prices. The trend component for the corresponding period increased by 0.2 %, which was by 1.4 percentage point less than the average growth for the last four quarters (Table 2).
Year-on-year, with seasonal and calendar adjustments, the sales increased by 4.6 %, without adjustment the sales grew by 5.1 %.

Graph 2
In 'telecommunications' in Q4 2007 sales increased by 4.6%, i.e. by 0.2 p.p. less compared to the average of the last four quarters. In terms of size groups the highest growth of sales was recorded for enterprises with 20 to 49 employees, however, the most significant contribution to the total growth came from big enterprises with 100+ employees. The growth started in Q1 2006 was followed by 'post and courier activities' recording a 8.9% growth mainly due to entities competing with the state post.
Over the year sales in transport and communications increased by 7.0% at constant prices which was the biggest increase for the last six years. The growth rate, however, gradually decreased over the year from 9.7% in Q1 down to 4.1% in Q4.

Sales in transport increased by 7.9% which was the biggest increase for the last seven years. The only type of transport recording a drop by 8.8%, y-o-y, was the 'transport via pipelines'. In 'transport via railways' sales increased by 1.3% owed mainly to the results of the first half-year. 'Other land transport' recorded a 4.2% growth reaching thus its record value for the year 2007 and, concurrently, for the last 14 quarters, in Q1. Sales in the 'air transport' increased by 8.2%, in 'inland water transport' by 3.4% especially due the development in the second half-year. The total growth of transport was most contributed to by 'supporting and auxiliary transport activities' which, on average, showed a 14.3% growth, y-o-y, (the biggest ever from the beginning of data collection, i.e. since 1997). Their growth rate, however, decreased over the year from 21.0% in Q1 down to 8.6% in Q4.

Sales in communications grew over the year by 5.2%, on average. In telecommunications contributing by over 85% to the total sales of this division, sales increased by 4.9% which was by 2 p.p. more compared to 2006. 'Post and courier activities' recorded the highest growth in 2007 (+8.5%) since 1997.

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Note:
1) Supporting and auxiliary activities in transport include especially activities in storage, cargo handling, operation of air terminals, controlling activities in air transport, logistic service and activities of travel agencies and tour operators
2) The whole time series are seasonally adjusted every quarter; indices in the graph are changed retroactively.

Contact person: Alena Hellerová, phone: 274052921, e-mail: alena.hellerova@csu.gov.cz
Data source: CZSO direct survey in enterprises
End of data collection: 5 February 2008
End of data processing: 8 February 2008
Data for Q4 2007 are preliminary, revised data for all months of 2007 will be known in June 2008, at the latest.
Quarterly data since 1997 are available in time series ( /financial_indicators_time_series ).