Czech industry growth slowed down in the summer

As the Czech Statistical Office (ČSÚ) has announced on Tuesday 7^th October, the industrial output of the country rose 1,7 percent in two summer months of July and August interannually, although in August it decreased 5,2 percent.

„,We can’t draw any firm conclusions based only on the August results,“ the Confederation of Industry‘s analyst Bohuslav Čížek stated. „These results were influenced by the summer vacations and also the number of working days was by one day lower than in the last year.“

According to the Confederation of Industry’s survey, the domestic industry doesn’t complain about the problems significantly. „The purchasing managers index rose a little bit and there was a moderate optimism and improvement of the Industrial confidence indicator  to be observed in September,“ Čížek stressed. „But the industrial production growth’s tempo as well as the growth in number of contracts’s tempo will be lower in the next future. After one year of growth, the comparative base has shifted.“

In his opinion, September could bring some positive results once again, but there aren’t any brilliant values to be awaited.

„We have predicted several times that the industrial growth‘s tempo will slow down,“ Čížek wrote. „The Czech industry has maintained its good shape, although the economic results of the eurozone and Germany were worse than awaited and there are some uncertainties in relation to the impact of the EU sanctions against Russia.“

The year-over-year growth of contracts‘ number was 1,4 percent higher in August but it has been the lowest value since June 2013. The largest year-over-year decrease has been registered in the automotive industry (6,1 percent) and in the other motor vehicle production (52,7 percent). In September, the Confederation awaits a return towards positive values.