Czech Republic: Industrial production soars to 31-month high in December, reflects base effect
February 6, 2014
In December, industrial production expanded 9.3% over the same month of the previous year. The reading came in above the 6.2% increase observed in November and marked the fastest pace of expansion since May 2011. The acceleration reflected, in part, a low base of comparison, as factory output plunged 11.4% in December 2012. A strong expansion in manufacturing output and a rebound in mining were the main drivers behind the increase.
A month-on-month comparison confirms that the annual increase was the result of a base effect. Industrial production contracted a seasonally-adjusted 0.3% in December, which contrasts the 1.3% increase registered in November.
In the full year 2013, industrial production grew 0.6%, which contrasts the 0.7% decrease registered in 2012. FocusEconomics Consensus Forecast panelists expect industrial output to expand 4.3% in 2014, which is up 0.4 percentage points from last month's forecast. For 2015, panelists expect industrial output to expand 4.5%.
Author: Ricardo Aceves, Senior Economist