Selected economy indicators - December 2011, January 2012

Selected economy indicators

In December, the industrial production increased inter-annually, as well as the construction production. The volume of exports grew faster than imports and the y-o-y surplus of the trade balance was higher than a year ago. December 2011 was compared to the same month of the previous year one working day less.
In January 2012, compared to December 2011 , the m-o-m consumer prices level increased mainly due to the increase of VAT , the inter-annual gain of prices accelerated. Number of registered unemployed people went up in January, the registered unemployment rate increased inter-monthly but decreased inter-annually.

DECEMBER 2011

INDUSTRY

The y-o-y volume of industrial production in December was higher by 2.0% really, after working days adjustment the production rose by 4.4%. The largest contribution to the overall increase, 2.0 percentage points, belongs to manufacture of motor vehicles, trailers and semi-trailers (growth by 11.5%), 1.4 p.p. brought manufacture of machinery and equipment (growth by 14.8%) and 0.6 p.p. manufacture of other transport equipment (growth of production by 28.2%). A downward effect on the growth (-1.1 p.p.) came from the drop in manufacture of computer, electronic and optical products by 26.9%. The seasonally adjusted volume of industrial production decreased inter-monthly by 0.8%.

Sales from industrial activity at current prices increased y-o-y by 2.4%. Direct export sales grew by 11.5%, domestic sales including indirect export sales of non-industrial enterprises fell by 4.2%. The share of direct export sales in total sales of industrial enterprises made up 45.8%, which was by 3.8 p.p. more than a year ago.

The value of new orders in selected industrial CZ-NACE activities went down by 1.2% y-o-y. Non-domestic new orders increased by 10.3%, whereas domestic new orders fell by 17.1%.

The average registered number of employees ¹ in enterprises with 50+ employees increased by 1.7% inter-annually. Their average monthly nominal wage reached CZK 27 453 and rose by 0.3% nominally but fell by 2.1% really.

In 2011, compared to 2010, the industrial production increased by 6.9% (a year ago the growth made up 10.3%). Quarterly, the industrial production went up by 12.3% in Q1, but decelerated its growth to 9.0% in Q2, to 3.7% in Q3 and to 3.1% in Q4. Sales from industrial activity at current prices increased by 7.2% y-o-y, direct export sales grew significantly faster (by 16.2%) whereas domestic sales went down by 0.4%. The value of new orders grew up by 5.4% of which non-domestic new orders by 12.1%; domestic new orders fell by 5.1%. The industrial growth was assured only by the export. Number of employees in enterprises with 50+ employees went up by 3.0%. Their average monthly wage increased to CZK 25 759, i.e. by 3.3% nominally and by 1.4% in real terms.

CONSTRUCTION

In December, the y-o-y volume of construction production went up by 14.6% in real terms, after working days adjustment by 16.2%. This development was mainly due to special factors (low base in December 2010, warm weather in late 2011, expected growth of VAT). The buildings increased by 13.8%, the civil engineering works by 17.2%. The construction production (after seasonal adjustment) inter-monthly rose by 5.5%.

The construction of 1 908 dwellings started, which was by 12.2% less than a year ago. The number of completed dwellings came down by 5.9% to 4 686 dwellings.

The average registered number of employees ¹ in construction enterprises with 50+ employees fell by 7.5% y-o-y. Their average monthly nominal wage reached CZK 35 163 and went up by 0.9% but fell by 1.5% really.

In 2011, in y-o-y comparison, the construction production was lower by 3,1% in real terms (the previous year the decrease made up 7,1%). After a growth by 7.0% in Q1, the construction production went down in y-o-y comparison by 4.8% in Q2, by 9.7% in Q3; but in Q4 it went up again by 0.4%. The buildings decreased by 0.3%, the civil engineering works by 8.7%. The number of started dwellings decreased by 2.1%, of completed dwellings by more than a fifth (21.4%). In enterprises with 50+ employees, number of employees decreased by 5.9%. The average monthly wage rose by 1.5% nominally and reached CZK 29 206 but dropped by 0.4% in real terms.

EXTERNAL TRADE ²

In December, the y-o-y volume of exports increased by 10.1%, the volume of imports by 5.1%. The trade balance showed a surplus of CZK 10.5 bn while a year earlier was almost balanced. The trade balance with EU member states was active: it reached the same amount as in December 2010 (CZK 45.5 bn). The passive trade balance with non-EU countries improved by CZK 10.4 bn in comparison with December 2010 and reached CZK 35.0 bn. December trade balance has been positively influenced especially thanks to the growth of surplus in trade with machinery and transport equipment.

After seasonal adjustment, m-o-m volume of exports and imports increased by 2.9% and 2.0%, respectively.

In 2011, in comparison with 2010, exports grew by 13.2% and imports by 10.9% (the previous year the growths of exports and imports were faster but in opposite relation: exports went up by 18.4% and imports by 21.2%). The trade balance surplus of CZK 191.4 bn was higher by CZK 70.2 bn in y-o-y comparison. Also the positive balances in each quarter exceeded the previous year: in Q1 2011, the surplus reached CZK 54.2 bn, thereafter CZK 44.3 bn in Q2, CZK 36.0 bn in Q3 and in Q4 grew up to CZK 56.9 bn.


JANUARY 2012

CONSUMER PRICES ³

In January, compared with December, total consumer prices level increased significantly by 1.8%. The month-on-month growth of CPI was influenced by increased lower VAT in January (according to preliminary calculation of the Czech Statistical Office was 1.1 p .p.). In total, prices of goods went up by 1.6% and prices of services by 2.0%. The highest growth in prices noted Health (by 4.0%), Housing, water, electricity, fuel (by 3.2%) and Food and non-alcoholic beverages (by 2.2%). Only, prices in Clothing and footwear decreased (by 4.3%). In terms of y-o-y comparison, consumer prices rose by 3.5% (by 2.4% in December), in households of pensioners by 4.9%. The price level increase was influenced mainly by growth of prices in Housing, water, electricity, fuel (by 1.5 p.p., price increase by 5.5%), Food and non-alcoholic beverages (by 1.1 p.p., price increase by 7.0%) and Transport (by 0.4 p.p., price increase by 3.8%).

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, stayed at 2.1%. Living costs (imputed rentals not involved) in households of pensioners was higher by 3.1%.

The y-o-y growth of harmonized index of consumer prices in the Czech Republic (provisional data) went up to 3.8% in January (the Eurostat flash estimate for Euroarea HICP was 2.7%).

UNEMPLOYMENT

The registered unemployment rate (according to the Ministry of Social Affairs) increased inter-monthly by 0.5 p.p in January and was 9.1% at the end of month. The unemployment rate of men went up by 0.6 p.p to 8.3%, the unemployment rate of women by 0.3 p.p to 10.1%. Compared to the end of January 2011, the registered unemployment rate decreased by 0.6 p.p.

At the end of January, the number of unemployed people registered by labour offices went up to 534.1 thousand persons. It increased by 25.6 thousand compared to the previous month but decreased by 37.8 thousand compared to January 2011. The number of free job opportunities fell down in m-o-m comparison but went up reaching 34.5 thousand inter-annually. The number of applicants per one job opportunity at the end of January was 15.5 persons. This represented an inter-monthly worsening and a significant inter-annual improvement, however with persistent regional disparities.


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).
² In ‘border statistics’ concept.
³ The consumer price indices are calculated with new weights, which are derived from the household expenditures in 2010, from January 2012 on the base of a standard revision of the calculations of the price indices. Up to now, indices have been calculated from the technical base December 2009=100; now it was replaced by a new technical base December 2011=100. Indices calculated that way are chained at all levels of the CZ-COICOP classification to the existing price indices with the base 2005=100. Thereby, a continuation of the existing index time series 2005 = 100, from which indices to other bases are derived (previous month = 100, corresponding period of the last year = 100 and annual rolling average, i.e. the average of index numbers over the last 12 months to the average for the previous 12 months) are ensured.

Published: 11.01.2012
The data are valid as of the release date of the publication.