Czech Republic: Industrial production plummets in July due to public holidays
September 6, 2016
Industrial production plunged 14.1% year-on-year in July, which contrasted the revised 4.0% increase registered in June (previously reported: +3.9% year-on-year) and represented the worst result since July 2009. The reading mainly reflected decreases in the manufacturing of motor vehicles, trailers and semi-trailers and in the manufacture of machinery and equipment. Conversely, manufacturing of pharmaceutical products as well as of other transport equipment increased. The Statistical Institute also noted that there were three days fewer in July 2016 than in July 2015, which contributed to the yearly drop, and added that, “July data were significantly influenced by distribution of public holidays within a working week and by movement of company holidays within both the holiday months. Many important industrial enterprises decided their company holiday to be in 2016 in July, unlike in the previous year when the holidays were taken in August.”
A month-on-month comparison showed that industrial output plummeted 9.7% in seasonally-adjusted terms in July, which contrasted June’s 2.3% expansion and marked the worst result on record. July’s sharp year-on-year contraction dragged heavily on the 12-month trend and annual average growth in industrial production fell from 4.2% in June to 2.6% in July, the worst reading in almost two and a half years.