Czech Republic: Industrial production rises for the first time after five consecutive drops
June 7, 2013
In April, industrial production increased 0.5% over the same month last year, which represents the first expansion following five consecutive contractions. In addition, the reading was virtually in line with market expectations of a 0.6% rise. According to the statistical office, the improvement was led by a notable increase in manufacturing output, especially in manufacturing of metal products and electrical equipment.
A month-on-month comparison, however, does not corroborate the improvement suggested by the annual data, as industrial production fell a seasonally adjusted 0.7% in April, which was below the 0.3% decline tallied in March.
The trend continues to point downwards, with the annual average variation in industrial production falling from minus 2.7% in March to minus 2.9% in April, the lowest level in 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