Selected economic indicators - February, March 2010

Selected economy indicators

In February, industrial production volume increased y-o-y, for the third successive month. On the contrary, construction output remained deeply under the last-year-level also in February. In 2010 external trade continued growing in exports and imports y-o-y. The trade balance ended in a surplus.
In March, the consumer prices level increased m-o-m; it was also higher y-o-y. The registered unemployment rate went down in March, however in was sizeably higher than in March 2009.

FEBRUARY 2010

INDUSTRY

In February, the y-o-y volume of industrial production was by 7.0% higher; the results affected among others a lower comparative basis from February 2009. The total increase was most affected by 5.3 p.p. manufacture of motor vehicles, trailers and semi-trailers (growth of production by 37.4%), by next 1.2 p.p. manufacture of basic metals, fabricated metal products, casting of metals (growth by one third) and by 0.9 p.p. manufacture of rubber and plastic products (growth by 14.4%). A downward effect on the growth (−0.8 p.p.) came from manufacture of other non-metallic mineral products (drop almost by one fifths) followed by manufacture of furniture and manufacture of machinery and equipment. The seasonally adjusted volume of industrial production decreased by 0.3%, as against January.

Sales in industry at current prices went up by 1.4% y-o-y; direct export sales went up by 6.0%. Their share in total revenues of industrial enterprises made up 48.4%; in February 2009 it was less by 2.1 p.p.

The y-o-y average number of employees in enterprises with 50+ employees went down by 11.3%. Their average monthly wage amounted to CZK 22 802 was up nominally and really by 6.0% and 5.4%, respectively.

The y-o-y value of new orders in selected industrial branches increased by 7.8%, value of foreign orders went up by 9.9%.

From January to February, as against the same period of 2009, volume of industrial production increased by 5.9%. Sales in industry went up by 1.1% and direct export sales by 7.2% at current prices. Number of employees in enterprises with 50+ employees went down by 12.3%; an average monthly wage was up nominally and really by 4.9% and 4.2%, respectively.

CONSTRUCTION

In February, the y-o-y volume of construction output went down about one fourth (by 23.6% at constant prices). The unfavourable weather in February and also a shortage of new construction orders had an impact on such sizeable drop. Whilst in structural engineering the production went down only by 5.5%, volume of building construction reduced its production by noticeably 29.5%. The m-o-m seasonally adjusted construction output went down by tiny 0.1%.

The construction of 1 829 dwellings started, which was less by one third than a year ago, to the contrary number of dwellings finished went up by 4.0% to 3 227.

An average number of employees in construction enterprises (with 50+ employees) went down by 7.9% y-o-y. Their average monthly wage reached CZK 23 843 and increased by 4.0% y-o-y; in terms of real comparison its growth was 3.4%.

From January to February y-o-y volume of construction output was lower by sizeably 24.5% in terms of real comparison. In construction enterprises (with 50+ employees) an average monthly wage increased nominally by 1.8% and really by 1.1% by a drop of employee number by 7.9%. Number of dwellings started decreased by 30.7%, whilst number of those finished only by 1.1%.

EXTERNAL TRADE ¹

In February, volume of exports continued for the fourth successive month in the annual growth, this growth was double-digital already (11.0%). Volume of imports also gained by 7.9% (all at current prices). The growth affected among others lower comparative basis from February 2009 when both volume of exports and imports went down approximately by one-fourth, y-o-y. The trade balance ended in a record-breaking February surplus amounted to CZK 15.3 bn that was by CZK 6.0 bn higher y-o-y. The trade balance with EU member states was active by CZK 46.4 bn, (by CZK 8.5 bn higher on a year ago) and with non-EU countries passive by CZK 31.1 bn, in February 2009 the debit was better by CZK 2.5 bn. The surplus of external trade growth had positive effect on the trade balance in trade of machinery and transport equipment, and further by improvement of balance in trade in consumer durable goods, mineral fuel, raw materials, beverages and tobacco. On the contrary, the trade balance got worse in trade of semi-finished goods and materials and in trade of foods and living animals. After seasonal adjustment, both m-o-m exports and imports went down by 1.8% and by 0.9%, respectively. Trends in exports and in imports went up by 1.5% and 1.3%, respectively.

From January to February volume of both exports and imports increased by 10.0% and 5.2%, respectively. The trade balance surplus amounted to CZK 29.7 bn was by CZK 16.4 bn higher y-o-y.


MARCH 2010

CONSUMER PRICES

In total, in March consumer prices level increased by 0.3% compared to February, prices of goods went up by 0.4%, and prices of services went down by 0.2%. The prices of food and non-alcoholic beverages (prices of food and vegetables), public transport (automotive fuel), clothing and footwear (spring collection) went up identically by 0.8%. In terms of the y-o-y comparison, consumer prices growth accelerated to 0.7% (i.e. by 0.1 p.p. more than in February 2010). The price level increase influenced especially prices of public transport (effect by 0.5 p.p., prices increase by 4.3%), prices in housing, water, energy and fuel identically by 0.3 p.p. (prices increase by 1.0%), and alcoholic drinks and tobacco (prices increase by 3.4%). A downward effect on the consumer prices level came from a price development in prices of food and non-alcoholic beverages (effect –0.3 p.p., price reduction by 1.5%). In total, prices of goods dropped by 0.5% and prices of services went up by 2.2%.

Consumer prices increased by 0.7% in Q1 2010 compared to Q1 2009. The growth of administratively regulated prices reached 1.0%, an average level of market prices increased by 0.5%.

Inflation rate, i. e. an increase in the average consumer price index for last 12 months related to the average CPI for the preceding 12 months reached 0.7% in March and was by 0.1 p.p. lower than in February 2010. Living costs (hypothetical rental fee is not involved) in households of pensioners jumped by 0.9%.

In March, the average harmonized index of consumer prices increased in the Czech Republic by 0.4% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.5%).

UNEMPLOYMENT

The registered unemployment rate (according to the Ministry of Social Affairs) decreased by 0.2 p.p. m-o-m, and amounted to 9.7% to the end of March. The unemployment rate in females decreased also by 0.2% to 10.4%, in males by 0.3 p.p. to 9.2%. In the last year the employment rate dropped in October only. As against end of March 2009 the registered unemployment rate was higher by 2.0 p.p. Labour offices registered 572.8 thousand job applicants, which was by 10.3 thousand less than a month ago, as against end of March of the last year it increased by 123.9 thousand persons, i.e. by 27.6% . Number of freshly graduated students and adolescents dropped, however their share in the total number of unemployed people as against previous month did not change and amounted to 6.1% for the third successive month; at the end of March 2009 reached 6.0%. Number of free number of job opportunities continued growing, at the end of March by 1.0 thousand to 33.1 thousand. Number of applicants per one job opportunity was 17.3 compared to 8.1 applicants at the end of March 2009.

In Q1 2010 the average unemployment rate amounted to 9.8% and increased by the same period of the last year by 2.8 p.p.


This press release was not edited for language.

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¹ The method of foreign trade data updating has been changed from quarterly (used till now) to monthly, starting with data processing for February 2010. With dissemination of preliminary data of the reference month will also be updated data for three preceding months at the same time.
Definitive data for 2009 will be published in September 2010.

Published: 13.04.2010
The data are valid as of the release date of the publication.