Czech Republic: Industrial production falls most in almost three years
November 6, 2012
In September, industrial production declined 7.1% over the same month last year, which exceeded both the 3.1% decline recorded in August as well as market expectations that had industrial output falling 4.0%. The figure marked, in fact, the largest decline recorded in almost three years, although the sharp fall can be partially explained by the fact that September 2012 had two less working days than the same month last year. The monthly deterioration mainly reflected a sharp contraction in manufacturing as well as in mining output. A month-on-month comparison does not corroborate the contraction suggested by the annual figures, as industrial production grew a seasonally adjusted 0.1% over the previous month, which contrasted the 2.9% contraction recorded in August. As a result of the monthly fall, the trend continues to point downwards, with annual average growth falling from 1.2% in August to 0.5% in September, the slowest pace in over two years.
Author: Ricardo Aceves, Senior Economist