Czech industry sends optimistic signals

Unexpectedly good news came from the Czech industry,  which has increased its growth to 7,7 percent year-on-year, as confirmed by the Czech Statistical Office (ČSÚ) on Friday 6^th April 2014. Working day adjusted data show even a 9,2 percent increase.

„The industrial production growth have overcome all expectations and it belongs to the most optimistic news of the current development,“ the Confederation of Industry analyst Bohuslav Čížek stressed. „We perceive the final numbers as a contribution to the economy stabilization, supporting further positive expectations.“

The industry‘s recovery started in the late summer 2013 and it has been registering, gradually, a rather solid growth in both production and contracts development.

„The value of the growth has been influenced by the low comparative basis of 2012/2013, so the next months dynamics may not achieve the contemporary level,“ Čížek adverted. „But we can’t deny that we are witnessing a clear recovery of the industrial production.“

The value of the new contracts rose interannually by 14,7 percent. In the case of the foreign contracts, it was 16,4 percent. A positive signal has been sent by the recently published data of the purchasing managers index whose positive value (57,3) was seconded by the very positive development of the foreign as well as the domestic contracts.

The industrial production recovery was helped especially by the car production, which rose by 16,5 percent interannually, in April. The amount of the new contracts has risen by 22,7 percent.

„Beside the proper development on the key markets, one of the favorable factors could be, at least in the European context, the strategy of the domestic producers,“ Čížek added. „In general, we could confirm the broad stabilization across all sectors.“