Czech Republic: Industrial productions drops in May albeit less than expected
July 9, 2012
In May, industrial production fell 2.4% over the same month last year, which contrasted the 2.2% expansion observed in April and marked, in fact, the first drop since October 2009. Nonetheless, the contraction was smaller than private sector analysts expectations, who had industrial output declining 3.4%. The fall was lead by a fall in manufacturing output and in electricity, gas, steam and air conditioning supply. A month-on-month comparison confirms the deterioration seen in the annual figures, as industrial output declined a seasonally adjusted 0.1% in May, contrasting the 0.1% increase recorded in April. As a result of the drop, the trend deteriorated, with annual average growth in industrial production falling from 4.2% in April to 2.8% in May, the slowest pace in almost two years.
Author: Ricardo Aceves, Senior Economist