Selected economic indicators - July, August 2010

Selected economy indicators

In July, the y-o-y industrial production volume grew; it was the eighth successive month. The construction continued dropping. The y-o-y volume of exports increased sizeably less than imports, the trade balance surplus was lower than in July 2009. In July was less two days on a year ago.
In August, the m-o-m consumer prices level decreased, the inter-annual gain of prices did not change. During the second holiday month the seasonal growth of registered unemployment rate decreased.

JULY 2010

INDUSTRY

The y-o-y volume of industrial production in July was up by 5.3% (after working days adjustment by 10.6%). The total increase was most contributed to by 1.4 p.p. manufacture of metal constructions and metal-working products (growth by 16.8%), by next 1.3 p.p. manufacture of machines and equipment (growth by 18.4%), and by 1.1 p.p. manufacture of personal computers, electronical and optical devices and appliances (growth by 36.5%). A downward effect on the growth (by -0.4 p.p.) came from the drop in manufacture of non-metallic mineral products by 5.6% and by -0.3 p.p. drop in manufacture of food products by 5.9%. The seasonally adjusted volume of industrial production increased by 0.3% as against June.

Revenues from industrial activity (at current prices) increased by 7.8% y-o-y. Direct export revenues of industrial enterprises increased by 16.1%. Their share in total revenues of industrial enterprises made up 48.3%; in July 2009 it was less by 3.5 p.p.

The average registered number of employees in enterprises with 50+ employees decreased by 2.0% inter-annually. Their average monthly wage reached CZK 24 902 and rose by 2.7% nominally and really by 0.8%.

The value of new orders in selected industrial CZ-NACE activities raised by 10.0% inter-annually, non-domestic new orders increased by 11.9%.

From January to July, as against the equal period of 2009, volume of industrial production increased by 9.1%. Sales in industry went up by 7.9% at current prices and direct export sales by 14.5%. The average number of employees in enterprises with 50+ employees went down by 7.2%, an average monthly wage went up nominally and really by 4.8% and 3.7%, respectively.

CONSTRUCTION

In July, the y-o-y volume of construction output went again down, by 4.5% (at constant prices) and after working days adjustment the drop amounted to 2.1%. Volume of both, structural engineering and building construction decreased (by 6.3% and 1.2%, respectively). The m-o-m seasonally adjusted construction output went up by 1.5%.

The construction of dwellings dropped markedly especially as a result of a low number of dwellings houses. The construction of 2 441 dwellings started, which was by 41.2% less than a year ago, number of dwellings finished went down almost by one quarter (by 24.3%) to 1 850 dwellings.

An average number of employees in construction enterprises with 50+ employees went down by 3.4% y-o-y. Their average monthly wage reached CZK 30 598 and increased by 5.3% y-o-y; in terms of real comparison its growth was 3.3%.

During first seven months in this year the y-o-y volume of construction output was really lower by 11.3% on a year ago; in structural engineering construction output was lower by 5.5% and in building construction by 13.9%. In construction enterprises with 50+ employees number of employees reduced by 4.8%, their average monthly wage went up nominally by 3.8% and really by 2.7%. Number of dwellings started decreased by 26.0%, number of dwellings finished decreased by 8.0%.

EXTERNAL TRADE

In July, the y-o-y volume of exports increased by 16.0%, volume of imports grew faster, by 20.5% - all at current prices. The July trade balance ends in a surplus amounted to CZK 6.3 bn, which was by CZK 5.4 bn lower inter-annually. The trade balance with EU member states was active by CZK 45.6 bn (by CZK 10.8 bn higher on a year ago) and with non-EU countries passive by CZK 39.3 bn, in July 2009 the debit was better by CZK 16.2 bn. The trade balance was negatively affected by the deficit increase in trade of mineral fuels and the drop of surplus in trade of industrial durable goods and chemical products. After seasonal adjustment, both m-o-m exports and imports went up by 4.2% and by 0.9%, respectively. Trends in exports and in imports went up by 2.8% and 2.1%, respectively.

From January to July volume of exports and imports went up by 14.9% and 16.2% y-o-y. The trade balance surplus amounted to CZK 88.3 bn was lower by CZK 1.7 bn than during first seven months of 2009.


AUGUST 2010

CONSUMER PRICES

In total, in August consumer prices level decreased against July by 0.3%. It was the first inter-annual drop in consumer prices level. Prices of goods decreased by 0.5%, prices of services went up by 0.2%. Prices in food, non-alcoholic beverages and public transport dropped most. On the other hand prices of holiday and culture raised most (seasonal prices growth in package holidays by 2.5%). In terms of the y-o-y comparison, consumer prices growth did not change, i.e. by 1.9%. The price level increase influenced by 0.7 p.p. prices of food and non-alcoholic beverages (prices increase by 3.7%), by next 0.6 p.p. prices in housing, water, energy and fuel (prices increase by 2.1%), and prices of alcoholic beverages and tobacco (prices growth by 5.6%) contributed to by next 0.5 p.p. An impact on prices in other groupings varied from -0.1 p.p. to 0.2 p.p. In total, prices of goods increased by 1.6% and prices of services went up by 2.3%.

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 0.9% in August and was by 0.1 p.p. higher than in July. Living costs (hypothetical rental fee is not involved) in households of pensioners went up by 1.2%.

In August, the average harmonized index of consumer prices increased in the Czech Republic by 1.5% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.6%).

UNEMPLOYMENT

Despite of the growth of unemployed freshly graduated students during the second holiday month the registered unemployment rate (according to the Ministry of Social Affairs) dropped by 0.1 p.p. and amounted to 8.6% to the end of the month. The unemployment rate in males decreased identically to 7.3% whilst in females increased by 0.1 p.p. to 10.4%. As against end of August 2009 the registered unemployment rate was up only by 0.1 p.p. Labour offices registered tightly more than one half million job applicants to the end of August (501,5 thousand) which was by 3.8 thousand lower than a month ago, as against end of August last year increased by 7.7 thousand persons, i.e. by 1.6% . An increase in the number of unemployed freshly graduated students and adolescents and their contribution to the total number of unemployed increased by 0.8 p.p. to 5.7% as against the previous month, at the end of August 2009 reached 5.3%. Number of free job opportunities number showed the highest annual gain (3.1 thousand) in this year m-o-m and amounted to 36.6 thousand. Number of applicants per one job opportunity was 13.7 compared to 12.0 applicants at the end of August 2009.


This press release was not edited for language.

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Published: 13.09.2010
The data are valid as of the release date of the publication.