Selected economic indicators - June, July 2010

Selected economy indicators

In June, the y-o-y industrial production volume continued growing; it was the seventh successive month. In this year, the construction output returned to the drop, which was broken only in May. The y-o-y volume of exports increased sizeably less than imports, the trade balance surplus was lower on a year ago.
In July, the m-o-m consumer prices level increased, the inter-annual gain of prices accelerated. During the first holiday month the seasonal growth of registered unemployment rate started.

JUNE 2010

INDUSTRY

The y-o-y volume of industrial production in June was up by 9.7%. The total increase was most contributed to by 2.9 p.p. manufacture of motor vehicles, trailers and semi-trailers (growth by 17.3%), by next 1.6 p.p. manufacture of metal constructions and metal-working products (growth by 21.5%) and by 1.2 p.p. manufacture of personal computers, electronical and optical devices and appliances (growth by 38.1%). A downward effect on the growth (by -0.2 p.p.) came from the drop in manufacture of furniture by 13.2%. The seasonally adjusted volume of industrial production increased by 0.7% as against May.

Revenues from industrial activity (at current prices) increased by 12.0%. Direct export revenues of industrial enterprises increased by 17.3%. Their share in total revenues of industrial enterprises made up 50.2%; in June 2009 it was less by 2.3 p.p.

The average registered number of employees in enterprises with 50+ employees decreased by 3.4% inter-annually. Their average monthly wage reached CZK 24 562 and rose by 4.3% nominally and really by 3.1%.

The value of new orders in selected industrial CZ-NACE activities raised by 12.3% inter-annually, non-domestic new orders increased by 6.4%.

In H1, as against the equal period of 2009, volume of industrial production increased by 9.9%, the growth accelerated from 7.5% in Q1 to 12.3% in Q2. Sales in industry went up by 7.9% at current prices and direct export sales by 14.3%. The average number of employees in enterprises with 50+ employees went down by 8.0%, an average monthly wage went up nominally and really by 5.2% and 4.3%, respectively.

CONSTRUCTION

In June, the y-o-y volume of construction output went down by 4.7% (at constant prices) and did not confirm the growth from May. Volume of both, structural engineering and building construction decreased (by 5.5% and 3.2%, respectively). The m-o-m seasonally adjusted construction output went down by 0.4%.

The construction of dwellings dropped markedly especially as a result of a low number of dwellings houses. The construction of 2 448 dwellings started, which was by 31.8% less than a year ago, number of dwellings finished went down almost by 41.2% for total 1 539 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 27 936 and increased by 4.3% y-o-y; in terms of real comparison its growth was 3.1%.

In terms of real comparison, in H1 the y-o-y volume of construction output was lower by 12.2%; in Q1 dropped by 21.4% and in Q2 by 6.3%. In structural engineering the half-year-construction output was lower by 14.6% and in building construction by 6.7%. In construction enterprises with 50+ employees number of employees reduced by 5.0%, their average monthly wage went up nominally by 2.8% and really by 1.9%. Number of dwellings started decreased by 22.5%, number of dwellings finished decreased by 5.6%.

EXTERNAL TRADE ¹

In June, the y-o-y volume of exports and imports increased approximately by one fifth (by 19.7%), volume of imports grew faster, by 28.0% - all at current prices. The June trade balance ends in a surplus since 2004, in this year the surplus amounted to CZK 10.4 bn was by CZK 9.9 bn lower inter-annually. The trade balance with EU member states was active by CZK 51.6 bn (by CZK 10.3 bn higher on a year ago) and with non-EU countries passive by CZK 41.1 bn, in June 2009 the debit was better by CZK 20.2 bn. The trade balance was negatively affected by the deficit increase in trade of mineral fuels and the drop of surplus in trade of machines and means of transport. After seasonal adjustment, both m-o-m exports and imports went up by 3.8% and by 5.7%, respectively. Trends in exports and in imports went up by 2.0% and 2.8%, respectively.

In H1 volume of exports and imports went up by 15.0% and 15.8%, respectively (in terms of real comparison volume of exports increased by more than 19% and volume of imports by almost 19%). The trade balance surplus amounted to CZK 83.2 bn was higher by CZK 3.4 bn than in H1 2009. In Q1 volume of exports increased by 10.9% and imports by 9.2%, in Q2 the increase reached 19.0% and 22.5%, respectively. The trade balance surplus amounted to CZK 46.0 bn in Q1, in Q2 it was CZK 37.2 bn. Whilst in Q1 the surplus was higher by CZK 11.7 bn inter-annually, in Q2 was lower by CZK 8.3 bn especially due to results in June.


JULY 2010

CONSUMER PRICES

In total, in July consumer prices level as against June increased by 0.3%; prices of goods by 0.1%, prices of services went up by 0.7%. Prices of holiday and culture raised most (seasonal prices growth in package holidays by 12.9%) and in alcoholic beverages and tobacco (prices of beer went up by 3.5%). Prices in housing, water, energy, fuel and health delivery increased identically by 0.5%. On the other hand prices of clothing and footwear dropped. In terms of the y-o-y comparison, consumer prices growth accelerated to 1.9% (by 0.7 p.p. more than in June 2010).The price level increase influenced identically by 0.6 p.p. prices of food and non-alcoholic drinks (prices increase by 3.3%), prices in housing, water, energy and fuel (prices increase by 2.2%). Prices of alcoholic beverages and tobacco (prices growth by 5.7%) 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 1.7% and prices of services went up by 2.2%.

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 0.8% in July and was by 0.2 p.p. higher than in June. Living costs (hypothetical rental fee is not involved) in households of pensioners went up by 1.0%.

In July, the average harmonized index of consumer prices increased in the Czech Republic by 1.6% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.7%).

UNEMPLOYMENT

After four months of dropping the unemployment rate started to increase seasonally in the first holiday month, among others due to growth number of unemployed freshly graduated students. In July 2010 the registered unemployment rate (according to the Ministry of Social Affairs) increased by 0.2 p.p. m-o-m, and approached 8.7% to the end of the month. The unemployment rate in females increased by 0.4 p.p. to 10.3% and in males dropped by 0.1 p.p. to 7.4%. As against end of July 2009 the registered unemployment rate was up by 0.3 p.p. Labour offices registered 505.3 thousand job applicants to the end of July which was by 4.8 thousand higher than a month ago, as against end of July last year increased by 20.0 thousand persons, i.e. by 4.1% . An increase in the number of unemployed freshly graduated students and adolescents and their contribution to the total number of unemployed increased by 0.1 p.p. to 4.9% as against the previous month, at the end of July 2009 reached 4.4%. Number of free job opportunities number slightly increased (by 0.6 thousand) m-o-m and in this year fluctuates around 33 thousand. Number of applicants per one job opportunity was 15.1 compared to 11.6 applicants at the end of July 2009.


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: 11.08.2010
The data are valid as of the release date of the publication.