Czech Republic: Industrial production declines for fifth consecutive month
May 7, 2013
In March, industrial production dropped 6.0% over the same month last year, which represents a deterioration compared to the 5.7% decline observed in February. In addition, the reading marks the fifth consecutive month of contracting output and overshot market expectations that had industrial production falling 4.5%.
The monthly decline reflected a sharp contraction in manufacturing output, which also suffered a fifth consecutive decline in March. Moreover, mining and quarrying contracted the most since December 2012.
A month-on-month comparison confirms the deterioration suggested by the annual figures, as industrial production contracted a seasonally adjusted 0.2% in March, which contrasted the 1.5% expansion observed in February.
As a result of the annual drop, the trend continues to point downwards, with the annual average variation in industrial production falling from minus 2.1% in February to minus 2.6% in March, the lowest level in almost 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