Selected economic indicators - May, June 2010

Selected economy indicators

In May, the y-o-y growth of industrial production volume was record-breaking in this year; however it did not reach the May 2008 level. The construction output was up for the first time in this year. The y-o-y volume of exports increased less than imports, the trade balance ended in a surplus. The results affected among others two more working days as against last year.
In June, the m-o-m consumer prices level did not change, the inter-annual gain remained on the level of 1.2%. The registered unemployment rate continued decreasing in June.

MAY 2010

INDUSTRY

The y-o-y volume of industrial production in May was up by record-breaking 16.9% in this year, after working day adjustment it increased by 11.3%. The total increase was most contributed to by 4.4 p.p. manufacture of motor vehicles, trailers and semi-trailers (growth by more than one fourth), by next 1.9 p.p. manufacture of metal constructions and metal-working products (growth by 25.1%) and by 1.8 p.p. manufacture of basic metals, metallurgic processing of metals and foundry industry (growth by 47.7%). A downward effect on the growth (by -0.4 p.p.) came from the drop in manufacture of beverages by 14.4%. The seasonally adjusted volume of industrial production increased by 0.1% as against April.

Revenues from industrial activity (at current prices) increased by 17.3%. Direct export revenues of industrial enterprises increased by 27.5%. Their share in total revenues of industrial enterprises made up 50.1%; in May 2009 it was less by 4.0 p.p.

The average registered number of employees in enterprises with 50+ employees decreased by 4.8% inter-annually. Their average monthly wage reached CZK 25 143 and rose by 5.2% nominally and really by 4.0%.

The value of new orders in selected industrial CZ-NACE activities raised by 27.2% inter-annually, non-domestic new orders increased identically.

In January to May, as against the equal period of 2009, volume of industrial production increased by 10.0%. Sales in industry went up by 7.0% at current prices and direct export sales by 13.6%. The average number of employees in enterprises with 50+ employees went down by 8.9%, an average monthly wage went up nominally and really by 5.4% and 4.5%, respectively.

CONSTRUCTION

For the first time in May, the y-o-y volume of construction output went up by 0.5% (at constant prices) in this year, however, after working days adjustment it was lower by 1.9% compared to May 2009. Volume of both structural engineering and building construction increased almost identically (by 0.5% and 0.6%, respectively). The m-o-m seasonally adjusted construction output went up by 7.2%.

The construction of 2 805 dwellings started, which was by 17.9% less than a year ago, number of dwellings finished went down almost by 8.1% for total 2 491 dwellings.

An average number of employees in construction enterprises with 50+ employees went down by 4.2% y-o-y. Their average monthly wage reached CZK 26 889 and increased by 4.8% y-o-y; in terms of real comparison its growth was 3.6%.

In terms of real comparison, in January to May the y-o-y volume of construction output was lower by sizeable 14.3%; in structural engineering by 8.0% and in building construction by 16.9%. In construction enterprises with 50+ employees number of employees reduced by 5.3%, their average monthly wage went up nominally by 2.5% and really by 1.6%. Number of dwellings started dropped by 20.3%, whilst number of dwellings finished went up by 0.8%.

EXTERNAL TRADE ¹

In May, the y-o-y volume of exports and imports increased approximately by one fourth (by 24.4% and 25.9%, respectively), volume of imports continued growing for seventh subsequent month, all at current prices. The trade balance ended in a surplus amounted to CZK 12.3 bn that was by CZK 0.6 bn higher y-o-y. The trade balance with EU member states was active by CZK 51.3 bn (by CZK 16.7 bn higher on a year ago) and with non-EU countries passive by CZK 39.0 bn, in May 2009 the debit was better by CZK 16.2 bn. The external trade balance affected mainly a growth in surplus of trade of machinery and means of transport, raw materials and industrial durable goods. On the contrary, the deficit increased in trade of mineral fuels. After seasonal adjustment, both m-o-m exports and imports went up by 1.9% and by 3.8%, respectively. Trends in exports and in imports went up by 0.8% and 1.0%, respectively.

In January to May volume of exports and imports went up by 14.1% and 13.2%, respectively. The trade balance surplus amounted to CZK 74.7 bn was higher by CZK 15.2 bn y-o-y.


JUNE 2010

CONSUMER PRICES

In total, in June consumer prices level as against May did not change; prices of goods dropped by 0.2%, prices of services went up by 0.3%. Prices of holiday and culture raised most (seasonal prices growth in package holidays by 3.5%) and in food and non-alcoholic beverages (prices increase of potatoes by more than one half because market offer switched from old to new potatoes). Prices of automotive fuels increased only by 0.4%. On the other hand prices of clothing and footwear and prices of alcoholic beverages, especially bottled beer dropped. In terms of the y-o-y comparison, consumer prices growth amounted to 1.2% remained also the same like in May. The price level increase influenced identically by 0.4 p.p. prices of alcoholic drinks and tobacco (prices increase by 4.4%), prices in housing, water, energy and fuel (prices increase by 1.4%). For the first time after eighteen months prices in food and non-alcoholic beverages increased. 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 0.4% and prices of services went up by 2.3%.

In H1, the y-o-y consumer prices increased by 0.9%, in Q1 by 0.7%, in Q2 by 1.2%.

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 0.6% in June and was the same like in April and May 2010. Living costs (hypothetical rental fee is not involved) in households of pensioners went up by 0.8%.

In June, the average harmonized index of consumer prices increased in the Czech Republic by 1.0% y-o-y (according to a flash estimate of Eurostat, the HICP in Euro-zone was 1.4%).

UNEMPLOYMENT

In June 2010 the growth of registered unemployment rate (according to the Ministry of Social Affairs) decreased by 0.2 p.p. m-o-m, and approached 8.5% to the end of the month. It dealt with the fourth drop in the time series, whilst last year the registered unemployment rate reduced only in October. The unemployment rate in females remained 9.9% and in males dropped by 0.3 p.p. to 7.5%. As against end of June 2009 the registered unemployment rate was up by 0.5 p.p. Labour offices registered more than one half of million (i.e. 500.5 thousand) job applicants to the end of June, which was by 14.3 thousand lower than a month ago, as against end of June last year increased by 36.9 thousand persons, i.e. by 8.0% . A decrease in the number of unemployed freshly graduated students and adolescents and their contribution to the total number of unemployed decreased by 0.7 p.p. to 4.8% as against the previous month, at the end of June 2009 reached 4.4%. Number of free job opportunities number slightly decreased (by 0.2 thousand) m-o-m. Number of applicants per one job opportunity was 15.2 compared to 10.7 applicants at the end of June 2009.

In H1 the average registered unemployment rate amounted to 9.4%, in Q1 it was 9.8% and in Q2 9.0%.

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.

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Published: 14.07.2010
The data are valid as of the release date of the publication.