Czech Republic: Industrial production disappoints
June 6, 2011
In April, industrial production expanded 4.7% over the same month last year, which was well below the revised 9.2% expansion registered in March (previously reported: +9.5% year-on-year) and market expectations, which had anticipated industrial output would grow 8.0%. The monthly reading represented the weakest expansion since January 2010. The slowdown in April was mainly the result of slower growth in manufacturing, which accounts for the bulk of industrial production. In addition, electricity, gas, steam and air conditioning supply contracted sharply, following three consecutive months of declining activity. A month-on-month assessment, however, does not corroborate the slowdown suggested by the annual figures, as industrial output rose a seasonally adjusted 0.34%, which contrasted the 1.03% drop observed in March. As a result of the slowdown, the trend now points to a moderation of the industrial sector, with annual average growth in industrial output falling from 11.7% in March to 11.1% in April.
Author: Ricardo Aceves, Senior Economist