Selected economic indicators - September, October 2010

Selected economy indicators

The y-o-y industrial production volume rose the tenth successive month. The construction continued dropping. The volume of imports continued growing faster; the trade balance was lower on a year ago.
In October, the m-o-m consumer prices level decreased as against September, the inter-annual gain of prices did not change. Number of registered unemployed people dropped under one half million, the registered unemployment rate did not change either inter-annually, or inter-monthly.

SEPTEMBER 2010

INDUSTRY

The y-o-y volume of industrial production in September was up by 12.2%. The total increase was identically contributed to by 2.6 p.p. manufacture of machines and machinery appliances (growth by almost one third) and manufacture of motor vehicles, trailers and semi-trailers (growth by 14.4%), by next 2.1 p.p. manufacture of metal constructions and metal-working products (production growth by 27.5%). A downward effect on the growth (by -0.2 p.p.) came from the drop in manufacture of beverages by 9.3%. The seasonally adjusted volume of industrial production increased by 1.1% as against August.

Revenues from industrial activity at current prices increased by 14.9% y-o-y. Direct export revenues of industrial enterprises increased by 20.6%. Their share in total revenues of industrial enterprises made up 50.3%; in September 2009 it was less by 2.4 p.p.

The average registered number of employees (workers hired by agencies are not involved) in enterprises with 50+ employees decreased by 1.2% inter-annually. Their average monthly wage reached CZK 24 116 and rose by 3.2% nominally and really by 1.2%.

The value of new orders in selected industrial CZ-NACE activities raised by 14.6% inter-annually, non-domestic new orders increased by 16.3%.

From January to September, as against the equal period of 2009, volume of industrial production increased by 9.9%; during individual quarters the inter-annual gain was stepwise 7.5%, 11.9% and in Q3 10.2%. Sales in industry went up by 9.4% at current prices and direct export sales by 16.0%. The average number of employees in enterprises with 50+ employees went down by 5.9%, an average monthly wage went up nominally and really by 4.6% and 3.3%, respectively.

CONSTRUCTION

In September, the y-o-y volume of construction output went again down, by 7.3% (at constant prices) this time. The impact of drop in structural engineering by 17.2% was considerably higher than the gain in building construction by 1.7%. The construction output after working days adjustment did not change m-o-m.

The construction of dwellings dropped markedly especially as a result of a low number of dwellings houses. The construction of 2 436 dwellings started, which was by 36.7% less than a year ago, number of dwellings finished went down by 8.9% to 3 363 dwellings.

An average number of employees (workers hired by agencies are not involved ) in construction enterprises with 50+ employees went down by 1.3% y-o-y. Their average monthly wage reached CZK 27 467 and decreased by 0.2% y-o-y; in terms of real comparison its drop was 2.2%.

From January to September the y-o-y volume of construction output was really lower by 9.4% as against during first nine months of 2009 year. In Q1, after the deep drop by 21.4%, during next quarters the drop decelerated to 7.2%, and 4.8% respectively. During three quarters the production in structural engineering dropped by 6.1% and in building construction by 11.0%. In construction enterprises with 50+ employees number of employees reduced by 4.0%, their average monthly wage went up nominally by 3.1% and really by 1.8%. Number of dwellings started decreased by 26.0%, number of dwellings finished decreased by 8.8%.

EXTERNAL TRADE

In September, the y-o-y volume of exports increased by 17.7%, for the seventh successive month volume of imports grew faster, now by 21.8% - all at current prices. The trade balance ends in a surplus amounted to CZK 12.4 bn in September, which was by CZK 4.5 bn lower inter-annually. The trade balance with EU member states was active by CZK 51.2 bn (by CZK 7.5 bn higher on a year ago) and with non-EU countries passive by CZK 38.8 bn, in September 2009 the debit was better by CZK 12.0 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. After seasonal adjustment, both m-o-m exports and imports went down by 1.5% and by 1.6%, respectively. Trends in exports and in imports went up by 0.4% and 0.2%, respectively.

During first three quarters volume of exports and imports went up by 16.2% and 18.7% y-o-y. The trade balance surplus amounted to CZK 98.8 bn was lower by CZK 17.1 bn than during first nine months of 2009. The development in individual quarters came back to the situation before the year 2009, i.e. in individual quarters stepwise decreased. In this year the surplus decreased from CZK 47.3 bn to CZK 33.5 bn between Q1 and Q2, and in Q3 further to CZK 18.0 bn. Whilst in Q1 the surplus was higher than last year, in next two quarters was lower, stepwise by CZK 10.8 bn and CZK 19.7 bn.


OCTOBER 2010

CONSUMER PRICES

In total, in October consumer prices level as against September decreased by 0.2%; it was the third m-o-m drop in this year. Prices of both, goodsand services dropped identically. Prices in holiday and culture dropped most (fall in prices of domestic package holidays by 8.3%) alcoholic beverages and tobacco, food and non-alcoholic beverages (drop in prices of fruit by 4.8% and vegetable by 4.3%). On the other hand prices in clothing and footwear increased (higher prices of new models). In terms of the y-o-y comparison, consumer prices growth was the same like in September, 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 4.0%), by next 0.6 p.p. prices in housing, water, energy and fuel (prices increase by 2.3%) and by 0.4 p.p. prices of alcoholic beverages and tobacco (prices growth by 4.5%). 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 1.2% in October and was by 0.1 p.p. higher than in September. Living costs (hypothetical rental fee is not involved) in households of pensioners went up by 1.7%.

In October, the average harmonized index of consumer prices increased in the Czech Republic by 1.8% y-o-y (the flash estimate for Euro-zone of Eurostat was 1.9%).

UNEMPLOYMENT

The registered unemployment rate (according to the Ministry of Social Affairs) after rounding off did not change in October and amounted to 8.5% to the end of the month. The unemployment rate in males dropped identically by 0.1 p.p. to 7.2 and 10.1%, respectively. As against end of October 2009 the registered unemployment rate did not change as well. For the first time in this year, at the end of October labour offices registered under one half million of unemployed people (495.2 thousand) which was by 5.3 thousand lower than a month ago, as against end of October last year decreased by 3.6 thousand persons. The number of unemployed freshly graduated students and adolescents decreased and its and their contribution to the total number of unemployed people lessened by 0.2 p.p. to 7.7% as against the previous month, at the end of October 2009 reached 7.6%. Number of free job opportunities number dropped by 1.4 thousand and amounted to 33.7 thousand m-o-m. Number of applicants per one job opportunity was 14.7 compared to 13.9 applicants at the end of October 2009.


This press release was not edited for language.

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Published: 11.11.2010
The data are valid as of the release date of the publication.