Czech Republic: Industrial production unexpectedly accelerates in November
January 6, 2012
In November, industrial production increased 5.4% over the same month the previous year, which represents an acceleration compared to the 1.7% expansion recorded in October. The expansion surprised private sector analysts on the upside as they had seen industrial production growth slowing to 0.5%. Manufacturing accelerated from a 2.8% increase in October to a 5.9% expansion in November. In addition, electricity gas, steam and air conditioning supply bounced back from a 1.5% decline in October to a 10.2% expansion in November. A month-on-month comparison confirms the strong reading suggested by the annual figures, as industrial production expanded a seasonally adjusted 2.72% over the previous month, which was well above the 0.27% increase tallied in October. The reading marked the second consecutive expansion after four consecutive months of industrial output growth being mired in the red. Despite the strong reading in November, however, the trend continues to point to a moderation in the industrial sector, with annual average growth in industrial production falling from 8.6% in October to 7.7% in November, thereby marking the slowest pace seen since September 2010.
Author: Ricardo Aceves, Senior Economist