Czech Republic: Industrial production expands at slowest pace since December 2009
September 7, 2011
In July, industrial production expanded 4.4% over same month last year, which marked a notable deceleration compared to the 7.9% expansion observed in June. The reading represented the slowest pace in 19 months and fell short of market expectations of a 5.0% rise. The July slowdown reflected notable decelerations in mining and quarrying as well as manufacturing. In contrast, electricity, gas, steam and air conditioning supply contracted 9.5% (June: +0.9% year-on-year). However, a month-on-month comparison does not confirm the deceleration suggested by the annual data, as industrial output expanded 0.11% in seasonally adjusted terms, which contrasted a 1.41% contraction registered in June. As a result of the weak expansion in July, the trend confirms that conditions in the industrial sector remains sluggish, with annual average growth in industrial production edging down from 10.9% in June to 10.8% in July.
Author: Ricardo Aceves, Senior Economist