Economic situation remains invariably positive

The picture of the economic situation at the end of September remains invariably positive. The heart of the indicators in the Business Cycle Tracer is firmly located in the high economic growth stage.

The economy grew substantially in the second quarter of 2006. Gross domestic product (GDP) volume was up by 2.8 percent on the year before. Exports were the main driving force behind this growth rate. Improving consumption expenditure and increasing investments contributed positively as well. The second quarter of 2006 had one working day fewer than the same period twelve months previously.

After adjustment for calendar and seasonal effects, GDP volume was 1.2 percent higher than in the first quarter of 2006. This is clearly the highest quarter-on-quarter growth in over two years.

In July the volume of goods exports was more than 6 percent larger than in the same period a year before. The increase is slightly less than the average growth in the first seven months of 2006.

Producers in manufacturing industry remained undiminished optimistic in September. Consumer confidence improved further. In the second quarter of 2006, business service providers were optimistic about future turnover and orders.

In August inflation was 1.4 percent. Prices in the manufacturing industry increased by 5.1percent compared to August 2005.The capital market interest rate of the latest 10-year central government loan was 0.1 percentage point lower than in July.

Unemployment decreased further in the period July-August and reached 400 thousand. In the second quarter, both the number of jobs and the number of vacancies increased further. The hours worked in temp jobs rose too.

Gross domestic product