Selected economic indicators - December 2010, January 2011

Selected economy indicators

The y-o-y industrial production volume rose the thirteenth successive month, the growth rate slightly slowed. The y-o-y dropping in construction sharply deepened. The volume of imports continued growing faster than exports; the trade balance was lower than a year ago. In comparison with the last year, December was one working day longer; the year 2010 was two days longer.
In January 2011, the m-o-m consumer prices level increased as against December 2010, the inter-annual gain of prices however slowed down. Number of registered unemployed people went up, the registered unemployment rate remained almost stable inter-monthly and inter-annually.

DECEMBER 2010

INDUSTRY

The y-o-y volume of industrial production in December was up by 12.7%, after working days adjustment by 10.0%. The largest contribution to the overall increase, 4.7 percentage points, belongs mainly to manufacture of motor vehicles, trailers and semi-trailers (growth by almost a third), 1.8 p.p. brought manufacture of machinery and equipment with production growth by 21.5% and 1.1 p.p. manufacture of electrical equipment (growth by 21.1%). A downward effect on the growth (-0.3 p.p.) came from the drop of manufacture of other non-metallic mineral products (by 7.6%). The seasonally adjusted volume of industrial production decreased against November by 0.9%.

Revenues from industrial activity at current prices increased y-o-y by 13.2 %. Direct export revenues of industrial enterprises increased by 24.4 %. Their share in total revenues of industrial enterprises made up 45.8 %, which was by 4.1 p.p. more than a year ago.

The average registered number of employees (workers hired by agencies are not involved ¹) in enterprises with 50+ employees decreased by 0.5% inter-annually. Their average monthly wage reached CZK 27 257 and rose by 1.1% nominally but decreased really by 1.2%.

The value of new orders in selected industrial CZ-NACE activities raised by 11.5% y-o-y, non-domestic new orders increased by 14.0%.

In 2010 against 2009, the volume of industrial production increased substantially by 10.5% but remained still lower than in 2007 and 2008 (by 6,3% and 4,6%, respectively). The y-o-y growth in each quarter showed a 7.5% increase in the 1st quarter, accelerated to 11.9% in the 2nd quarter, slowed down slightly to 10.9% in the 3rd quarter and accelerated to 11.8% in the 4th quarter. Sales in industry at current prices went up by 10.1%, direct export sales rose significantly faster (by 17.0%). The average number of employees in enterprises with 50+ employees went down by 4.7%, their average monthly wage reached 24 928 CZK and increased nominally and really by 4.3% and 2.8%, respectively.

CONSTRUCTION

In December, the y-o-y volume of construction output went again down, this time by significant 14.6% (at constant prices); after working days adjustment it went down by 15.7%. After three-month increase, the building construction experienced a sharp drop by 14.3%. The civil engineering continued in long-term downward trend and its production fell by 15.6%. The construction output (after seasonal adjustment) decreased by 13.4% m-o-m. Decline in construction output was considerably contributed to also by unusually cold weather and excessive snowfall.

The construction of 2 172 dwellings started, which was by 0.8% less than a year ago, number of dwellings completed went down by 16.5% to 4 982 dwellings.

The average registered number of employees (workers hired by agencies are not involved ¹) in construction enterprises with 50+ employees went down by 0.1% y-o-y. Their average monthly wage reached CZK 35 256 and came down by 6.5% nominally and by 8.6% really.

In 2010 against 2009, the y-o-y volume of construction output was lower by 7.8% really; identically by 8.7% when comparing to years 2007 and 2008. After a strong y-o-y decline in 1st quarter (by 21.4%), declines in other quarters were not so large: 7.2% in the 2nd quarter, 3.9% in the 3rd quarter and 4.9% in the 4th quarter. The building construction decreased y-o-y by 8.4%, the civil engineering went down by 6.7%. The number of employees reduced by 3.0% in enterprises with 50+ employees, their average monthly wage went up nominally by 2.5% and really by 1.0%, reaching CZK 28 734. The number of dwellings started fell by almost a quarter, the number of dwellings completed by 5.3%.

EXTERNAL TRADE

In December, the y-o-y volume of exports increased by 27.0%, for the tenth successive month volume of imports grew faster, now by 28.5% - all at current prices. These growth rates belonged among the highest in 2010. The trade balance ended in a surplus of CZK 1.0 bn in December, which was by CZK 1.7 bn lower inter-annually and was just the second December surplus in the history of the Czech Republic. The trade balance with EU member states was active, it reached CZK 45,8 bn, which was about CZK 12.2 bn more than the previous year. The trade balance with non-EU countries was again passive, it amounted to CZK 44.8 bn, but in December 2009, the debit was better by CZK 13.9 bn. The trade balance was negatively affected mainly by the worse balance of trade in manufactured goods by material, chemical products, crude materials and mineral fuels. After seasonal adjustment, m-o-m exports went up by 2.0% and imports by 1.6%. Trends in exports and in imports raised by 1.0% and 0.8%, respectively.

From January to December 2010, y-o-y exports increased by significantly 17.7% and imports by 20.3%. The trade balance surplus amounted to CZK 124.5 bn and it was lower by CZK 25.0 bn than in the year 2009. As for the quarterly development in 2010, the surplus went up to CZK 47.3 bn in the 1st quarter, continued falling down to CZK 33.5 bn in the 2nd quarter and even to 15.4 bn in the 3rd quarter; but went considerably up to CZK 28.4 bn in the 4th quarter. Apart from the 1st quarter, all the surpluses were lower than y year ago.


JANUARY 2011

CONSUMER PRICES

In January, total consumer prices level increased by 0.7% compared with December, which was the lowest January m-o-m price raise since 2005. In total, prices of goods increased by 0.5% and the prices of services by 0.8%.
The main component with the highest rate was Housing, water, electricity, gas and other fuels (by 1.7%). The prices continued growing in Alcoholic beverages, tobacco, Transport (both by 0.9%) and Food and non-alcoholic beverages (by 0.7%). These price increases were reduced by price decreases (due to sales) of Clothing and footwear by 3.7%. In terms of the y-o-y comparison, consumer prices rose by 1.7% (but the growth rate was by 0.6 p.p. lower than in December). The price level increase was influenced by 0.7p.p. by higher prices of Food and non-alcoholic beverages (by 4.3%) and Housing, water, electricity, gas and other fuels (price increase by 2.7%). Alcoholic beverages and tobacco contributed to the total increase by another 0.3 p.p. (price increase by 3.5%).

Inflation rate, expressed as the increase of the average consumer price index for last 12 months related to the average CPI for the previous 12 months, reached 1.6% in January and was by 0.1 p.p. higher than in December 2010. Living costs (imputed rentals not involved) in households of pensioners went up by 2.4%.

In January, the average harmonized index of consumer prices decelerated in the Czech Republic to 1.9% y-o-y (the Eurostat flash estimate for Euroarea was 2.4%).

UNEMPLOYMENT

The registered unemployment rate (according to the Ministry of Social Affairs) increased marginally by 0.1 percentage point in January and amounted to 9.7% as of the end of month. The unemployment rate of men went up by 0.3 p.p. to 9.1%, the unemployment rate of women went down by 0.2 p.p. to 10.5%. In comparison with the end of January 2010, the registered unemployment rate decreased by 0.1 p.p.
At the end of January, the number of unemployed people registered by labour offices increased (571.9 thousand persons) which was by 10.3 thousand more than a month ago; but compared to the same period of the previous year the number of unemployed decreased by 2.4 thousand persons. The number of unemployed new graduated students and youths fell down, their share in total number of unemployed decreased by 0.3 p.p. to 6.0%; it reached 6.1% at the end of January 2010. Number of free job opportunities in m-o-m comparison increased, in y-o-y comparison slightly dropped and was 31.4 thousand. Number of applicants per one job opportunity was 18.2 persons. This number remained unchanged in both m-o-m and y-o-y comparisons.

This press release was not edited for language.

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¹ The indicator registered number of employees does not include: persons working under various contracts for work, working owners of enterprises and cooperating household members, who do not have contracts of employment. Data on the registered number of employees in industry (construction) also exclude agency workers, who have contracts of employment, however, not within the industry (construction).

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Published: 11.02.2011
The data are valid as of the release date of the publication.