Czech Republic: Industrial production slows sharply in October
December 7, 2010
In October, industrial production added 6.9% over the same month last year. The reading nearly halved the 12.4% expansion observed in September and fell short of market expectations, which had industrial output rising 10.0%. The deceleration was broad-based, as manufacturing output, which accounts for the bulk of industrial production, expanded at a slower pace compared to the previous month (September: +11.7% year-on-year; October: +7.1% yoy). Mining and quarrying output decelerated from a buoyant 33.0% annual expansion in September to 18.3% in October. Simultaneously, electricity, gas, steam and air condition supply contracted 0.3% in October, contrasting a 9.0% expansion tallied in September. A month-on-month comparison corroborates the deceleration suggested by the annual figures, as industrial production dropped a seasonally adjusted 0.27% in October (September: +0.64% mom). However, the trend continues to point upward, with annual average growth in industrial production rising from 6.8% in September to 8.2% in October.
Author: Ricardo Aceves, Senior Economist