Czech Republic: Industrial production growth remains weak
December 7, 2011
In October, industrial production increased 1.7% over the same month last year, which was virtually unchanged from the revised 1.6% expansion observed in September (previously reported: +2.5% year-on-year). The reading fell short of market expectations that had industrial output growing 2.2%. The October outturn reflected an expansion in manufacturing, which grew 2.8% year-on-year and mirrored the pace recorded in September. In contrast, mining and quarrying plummeted 11.8% in October (September: -2.2% yoy), whilst electricity, gas, steam and air conditioning supply dropped 1.5% (September: -9.2% yoy). However, a month-on-month comparison does not corroborate the weak reading suggested by the annual figures, as industrial production swung from a seasonally adjusted 0.37% contraction in September to a 0.10% increase in October, which marked the first expansion after four consecutive months of industrial output growth being mired in the red. The trend continues to suggest sluggish growth in the industrial sector, however, with annual average growth in industrial output declining from 9.2% in September to 8.6% in October, thereby marking the slowest pace since October 2010.
Author: Ricardo Aceves, Senior Economist