Czech Republic: Industrial production growth slows sharply in March
May 9, 2011
In March, industrial production grew 9.5% over the same month last year, which represented a slowdown compared to the 13.0% expansion observed in February and fell short of market expectations, which had seen industrial output easing to 12.0%. The March result represented the weakest expansion since October 2010, after industrial output grew at a double-digit rate for four straight months. The deceleration in March was mainly the result of slower growth in both manufacturing production and mining and quarrying. In addition, electricity, gas, steam and air conditioning supply contracted for the third consecutive month. A month-on-month comparison points to an even stronger deterioration in industrial output, as industrial production dropped a seasonally adjusted 0.86% in March, which contrasted a 0.09% increase in February. As a result of the sharp slowdown, the trend turned flat, with annual average growth unchanged at February's 11.4%.
Author: Ricardo Aceves, Senior Economist