Czech Republic: Industrial production plummets in August due to base effect
October 8, 2014
In August, industrial production decreased 5.2% over the same month last year, which marked the sharpest fall since June 2013. The reading contrasted significantly the 8.6% expansion registered in July and undershot the 1.0% increase the market had expected. According to the Statistical office, August’s sharp deterioration was influenced by a strong base effect.
A sequential comparison shows that industrial production in August decreased a seasonally-adjusted 3.6% over the previous month, which contrasted the 0.6% increase observed in July.
As a result of the weaker annual reading, the trend deteriorated in August. Annual average growth in industrial production fell from 5.9% in July to 5.3% in August.
Author: Dirina Mançellari, Senior Economist