This is confirmed by considerably higher production growth figures in June
The last months were marked by considerable fluctuations in industrial production growth. Following low results in March, April’s industrial sales rose 14.9% year on year against only 2.3% in May. The production fall due to less workdays in May is estimated at around 6 percentage points. In June industrial production rose 7.2% against June 2007, which proves that this May’s low production figures were not a lasting trend. Growth in manufacturing industry reached 7.7% in June, sales in mining industry closed at 9.7% against the previous year, electricity, gas and water supply went down 1.2%. In the first half of 2008 industrial sales were 8.5% above the previous year.
In June 2008 growth was booked in 19 out of 29 industrial branches. Up among others were the auto, machinery, equipment, metal, petroleum and food sectors. Falling sales were recorded among others in transport equipment, wood products, furniture, textiles and chemicals.
Among the main industrial sectors, sales in January-May grew most in investment goods and consumer durables (respectively 20% and 16%). Sales also rose in the energy (7%), supplies (4%) and consumer non-durables (3%) sectors.
Over the first five months of 2008 labour productivity measured by sales per employee was 4.9% above the previous year, with employment and average gross monthly wages up respectively up 3.5% and 11%. In 2006 productivity rose 10% and in 2007 6%. Mid-year figures for 2008 show a slowdown in productivity growth against previous years. A cause for concern are wages growing faster than productivity, which in the long run could impair competitiveness and profitability.
In the first half of 2008 sales were on the rise in most industrial branches. The highest growth (by over 20%) was booked in hi-tech production (medical equipment, precision instruments, radio, TV and telephone gear, machinery, equipment, cars, etc.). Down at mid-year (from the first quarter) were sales of wood and tobacco products, chemicals, construction materials and furniture.