Czech Republic: Industrial production contracts in August
October 8, 2012
In August, industrial production declined 3.1% over the same month last year, which contrasted both the 4.2% expansion recorded in July and market expectations that had industrial output rising 0.1%. The deterioration was broad-based, reflecting a notable contraction in electricity gas, steam and air conditioning supply. A month-on-month comparison corroborates the contraction suggested by the annual figures, as industrial production plunged a seasonally adjusted 2.9% over the previous month, which contrasted the 0.9% expansion recorded in July. As a result of the monthly fall, the trend now points downwards after slightly improving in the previous month, with annual average growth falling from 1.9% in July to 1.2% in August, the slowest pace in over two years.
Author: Ricardo Aceves, Senior Economist