Good news for the Czech industry in February

The industrial production in the Czech Republic rose 6,7 percent year-on-year in February, the Czech Statistical Bureau (ČSÚ) announced on Monday 7^th April. 2013. After the removal of seasonal influences, the industrial production growth was 1,7 percent.

„The  low comparative base at the turn of 2012 and 2013 and the long-term weaker manufacturing output represent a drawback, but the contemporary growth rate could be viewed as a good step forward at the beginning of 2014,” the Confederation’s analyst Bohuslav Čížek wrote.

“These are further important numbers signaling how the industry development in the first quarter of 2014 could be,” Čížek stressed. “The favorable trend registered in the second half of the last year is continuing. It helps to stabilize the industry and to gradually surpass the production and revenue rates in certain companies and branches, achieved before the crisis.”

Apart from the Czech Statistical Bureau numbers and the purchasing managers index, the economic sentiment and production expectations have improved interannually as well. More and more companies confirm an increase in the number of contracts, especially of the foreign ones.

The value of the new contracts, as an indicator of the industrial production development for the next months, rose 19,9 percent, 11,9 percent of this increase was ensured by the automotive production. The foreign contracts rose 23 percent, the domestic ones 14,1 percent.

There is, nevertheless, a great difference in the individual companies and branches achievements and not all the firms contributed to the promisingly good final results of the Czech industry. As a positive signal could be viewed the fact that the production of these companies don’t sink further and that their management has launched a process of stabilization.