Czech Republic: Industrial production contracts more than expected
April 8, 2013
In February, industrial production dropped 5.7% over the same month last year, which marks a deterioration compared to the 4.4% contraction recorded in January, exceeding market expectations that had industrial output declining 5.0%. The monthly decline was mainly driven by a sharp contraction in manufacturing as well as in electricity, gas and steam generation.
However, a month-on-month comparison saw industrial production expanding a seasonally adjusted 1.6% in February, which contrasts the 0.1% decline observed in January.
As a result of the annual drop, the trend continues to point downwards, with the annual average variation in industrial production falling from minus 1.2% in January to minus 2.1% in February, the lowest level in almost three years.
FocusEconomics Consensus Forecast panellists expect industrial output to expand 1.3% in 2013, which is unchanged from last month's forecast. For 2014, panellists expect industrial output to accelerate to 4.1%.
Author: Ricardo Aceves, Senior Economist