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Czech Watch - 16 January 2002

16.1.2002 10:40

Industrial output rose by 6.6%, year-on-year, in November. After working days adjustment the production increased by 4.5%. Figures are better than our forecast (5.0%) and the market consensus (3.2%). Industrial sales grew by 4.0% and an average nominal wage increased by 4.3% to CZK 16,906. Real average wage rose by 0.1% while labor productivity grew by 5.2%.

The Czech government is going to decide how to pay a purchase of Gripen fighters for the Czech army. BAE Systems, Gripen producer, offered favorable credit conditions. The second possibility is to use privatization receipts denominated in foreign currency. This way could diminish a speculation of a volume of privatization receipts that could be converted into the Czech currency and thus ease burden that push the Czech koruna to appreciation.

Skoda Auto increased sales of their cars by 6.2% to 462,321 in 2001. 82% of the total production was exported. The Volkswagen group, which included Skoda Auto, raised their market share in EU to 18.9% in 2001 from 18.7% in 2000. Skoda Auto sold 82,405 cars at the domestic market.

Sales at U.S. retailers fell less than expected in December and their business in the final three months of 2001 was the best for any quarter in almost two years, signs the economy may emerge soon from recession. Retail sales decreased 0.1% during the month, reflecting declines at auto dealers and cheaper gasoline, while business increased at electronics, department and furniture stores, the Commerce Department said. The drop followed a 3% fall a month earlier and October's 6.4% surge.

German retail sales rose 1.6% from October. French industrial production fell 0.8%, month-on-month, in October.

Click here for the „Czech economic daily“ in .pdf format.

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