Czech Republic: Industrial production soars in June
August 6, 2014
In June, industrial production jumped 8.1% over the same month last year. The reading represented a notable acceleration compared to the 2.5% increase registered in May and was broadly in line with the 8.0% rise the markets had expected. June’s result reflected an important improvement in manufacturing output, while electricity generation as well as mining and quarrying contracted in June, although at a slower pace. Moreover, June’s robust increase also reflected a low base of comparison, as industrial production contracted 5.2% in June 2013.
A sequential comparison confirms the base effect: industrial production increased only a seasonally-adjusted 0.1% over the previous month in June, which contrasted the 1.5% contraction observed in May.
As a result of the stronger annual reading, the trend continues to suggest that a recovery in the industrial sector is on its way: annual average growth in industrial production rose from 4.3% in May to 5.4% in June.
Author: Ricardo Aceves, Senior Economist