Czech Republic: Industrial production growth slows in February
April 6, 2011
In February, industrial output grew 13.0% over the same month last year, which represented a slowdown compared to the revised 16.4% expansion observed in January (previously reported: +16.9% year-on-year), but surprised private sector analysts on the upside, who had industrial production slowing to 10.1%. Despite the deceleration, the reading represented the fourth consecutive month of double-digit growth. The slowdown in February mainly reflected a smaller expansion in manufacturing, as well as in mining and quarrying. In addition, public utilities contracted over January. A month-on-month comparison confirms the slowdown suggested by the annual data, as industrial production rose a seasonally adjusted 0.22% in February, down markedly from a 3.19% increase in January. Moreover, the trend continues to point to a healthy performance in the industrial sector, with annual average growth rising from 10.9% in January to 11.4% in February. Meanwhile, the Central Bank sees the economy growing 1.6% this year, on the back of sharp fiscal tightening measures adopted by the government. For 2012, the Bank expects GDP growth to accelerate to 3.0%.
Author: Ricardo Aceves, Senior Economist