Selected economic indicators - August, September 2010

Selected economy indicators

The y-o-y industrial production volume rose the ninth successive month, the growth was distinct in August. The construction continued dropping. The volume of imports increased more than the gain in exports, the trade balance was almost equal; the surplus was the lowest in this year. In August was more 1 day on a year ago.
In September, the m-o-m consumer prices level decreased as against August, the inter-annual gain of prices accelerated. After holiday months the seasonal growth of registered unemployment rate slightly decreased, however number of freshly graduate students markedly increased.

AUGUST 2010

INDUSTRY

The y-o-y volume of industrial production in August was up by 12.9% (after working days adjustment by 10.1%). The inter-annual gain of seasonally adjusted industrial production is oscillating around 10% for five months. The total increase was most contributed to by 2.7 p.p. manufacture of motor vehicles, trailers and semi-trailers (growth by 16.3%), by next 2.1 p.p. manufacture of metal constructions and metal-working products and by 1.5 p.p. manufacture of electric appliances. The production in both mentioned branches grew by more than one fourth. A downward effect on the growth (by -0.3 p.p.) came from the drop in manufacture of beverages by 9.7%. The seasonally adjusted volume of industrial production increased by 1.3% as against July.

Revenues from industrial activity (at current prices) increased by 14.4% y-o-y. Direct export revenues of industrial enterprises increased by 22.0%. Their share in total revenues of industrial enterprises made up 48.4%; it was more by 3.0 p.p. on a year ago.

The average registered number of employees in enterprises with 50+ employees decreased only by 1.5% inter-annually. Their average monthly wage reached CZK 23 883 and rose by 4.6% nominally and really by 2.6%.

The value of new orders in selected industrial CZ-NACE activities raised by 22.1% inter-annually, non-domestic new orders increased by 20.6%. Faster growth was monitored only in May.

From January to August, as against the equal period of 2009, volume of industrial production increased by 9.6%. Sales in industry went up by 8.7% at current prices and direct export sales by 15.3%. The average number of employees in enterprises with 50+ employees went down by 6.5%, an average monthly wage went up nominally and really by 4.8% and 3.6%, respectively.

CONSTRUCTION

In August, the y-o-y volume of construction output went again down, by 2.1% (at constant prices) and after working days adjustment the drop amounted to 3.3%. The impact of drop in building construction volume by 5.6% was higher than the gain in structural engineering by 4.6%. The m-o-m seasonally adjusted construction output went up by 0.2%.

The construction of dwellings dropped markedly especially as a result of a low number of dwellings houses. The construction of 2 794 dwellings started, which was by 13.6% less than a year ago, number of dwellings finished went down by 14.8% to 2 202 dwellings.

An average number of employees in construction enterprises with 50+ employees went down by 0.6% y-o-y. Their average monthly wage reached CZK 26 866 and increased by 1.7% y-o-y; in terms of real comparison its drop was 0.2%.

During first eight months in this year the y-o-y volume of construction output was really lower by 9.8% on a year ago; in structural engineering construction output was lower by 3.8% and in building construction by 12.6%. In construction enterprises with 50+ employees number of employees reduced by 4.3%, their average monthly wage went up nominally by 3.6% and really by 2.4%. Number of dwellings started decreased by 24.4%, number of dwellings finished decreased by 8.8%.

EXTERNAL TRADE

In August the y-o-y volume of exports increased by 23.0%, volume of imports grew faster, by 30.1% - all at current prices. The trade balance ends in a minimal surplus amounted to CZK 0.5 bn, which was by CZK 8.6 bn lower inter-annually. The trade balance with EU member states was active by CZK 38.9 bn (by CZK 5.9 bn higher on a year ago) and with non-EU countries passive by CZK 38.4 bn, in August 2009 the debit was better by CZK 14.5 bn. The trade balance was negatively affected by the surplus decrease in trade of machinery and means of transport and by the deficit increase in trade of mineral fuels and chemical products. After seasonal adjustment, both m-o-m exports and imports went up by 0.3% and by 1.4%, respectively. Trends in exports and in imports went up by 1.9% and 1.4%, respectively.

From January to August volume of exports and imports went up by 15.9% and 18.0% y-o-y. The trade balance surplus amounted to CZK 86.8 bn was lower by CZK 12.2 bn than during first eight months of 2009.


SEPTEMBER 2010

CONSUMER PRICES

In total, in September consumer prices level as against August decreased seasonally (by 0.3%); it was the second m-o-m drop in this year. Prices of goods did not change; prices of services went down by 0.8%. Prices in holiday and culture dropped most (fall in prices of package holidays by 14.7%) and public transport (drop in prices of automotive fuel by 1.0%). On the other hand prices in education raised most (increase of fees in nursery schools, private basic schools, youth clubs and for qualification courses), clothing and footwear (higher prices of new models). In terms of the y-o-y comparison, consumer prices growth was by 0.1 p.p. higher than in August, i.e. by 2.0%. The price level increase influenced by 0.7 p.p. prices of food and non-alcoholic beverages (prices increase by 4.1%), 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 5.3%) 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%.

Having been monitored in individual quarters prices growth continually accelerated, in Q1 consumer prices increased by 0.7% inter-annually, in Q2 by 1.2% and in Q3 by 1.9%. Administratively regulated prices increased by 1.0% in Q1 and during next quarters gradually by 2.4% and 3.7%. Market prices were up during individual quarters by 0.5%; 0.9% and 1.5%.

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 1.1% in September and was by 0.2 p.p. higher than in August. Living costs (hypothetical rental fee is not involved) in households of pensioners went up by 1.5%.

In September, the average harmonized index of consumer prices increased in the Czech Republic by 1.8% y-o-y (the same as a flash estimate for Euro-zone of Eurostat).

UNEMPLOYMENT

Despite of the high growth of unemployed freshly graduated students during the summer holiday the registered unemployment rate (according to the Ministry of Social Affairs) dropped by 0.1 p.p. in September and amounted to 8.5% to the end of the month. The unemployment rate in males did not change and remained at 7.3% whilst in females decreased by 0.2 p.p. to 10.2%. As against end of September 2009 the registered unemployment rate was down by 0.1 p.p. and an inter-annual drop occurred since December 2008 for the first time. Labour offices registered tightly more than one half million job applicants to the end of September (500,5 thousand) which was by 1.0 thousand lower than a month ago, as against end of September last year decreased by 0.3 thousand persons. An increase in the number of unemployed freshly graduated students and adolescents and their contribution to the total number of unemployed increased by 2.2 p.p. to 7.9% as against the previous month, at the end of September 2009 reached 7.6%. Number of free job opportunities number dropped by 1.5 thousand and amounted to 35.1 thousand m-o-m. Number of applicants per one job opportunity was 14.3 compared to 12.9 applicants at the end of September 2009.

From Q1 to Q3 the registered unemployment rate amounted to 9.1%, in Q1 9.8%, in Q2 9.0% and in Q3 8.6%.

This press release was not edited for language.

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Published: 12.10.2010
The data are valid as of the release date of the publication.