Industry forecast remains optimistic

The tempo of the industrial production in the Czech Republic slowed down to 3,2 percent in October, in comparison to 3,7 percent in September.

The industrial production’s result is not as splendid as in September but the general optimism as to the prospect for the next months is stable. The somewhat lower value of the industrial production’s growth in October meets fully our expectations and we don’t expect any decrease in the production's volume, the Confederation of Industry’s analyst Bohuslav Čížek points out.

The Czech industry is able to maintain its position and the automotive manufacturing remains its key sector. Although the low comparative base‘s effect has been gradually wearing out and the eurozone growth is lower than expected, the industry remains driving force of the Czech economy with a somewhat lower growth’s tempo than at the beginning of the year. It has been confirmed by other indicators as the Purchasing Managers' Index, as well as by our own surveys and conjectural surveys.

The value of the new contracts raised 8,3 percent, while the growth tempo of both foreign and domestic contracts has been approximately the same. The results reflect one important factor, namely the stabilization of the domestic demand that is to be observed in the first three quarters of 2014 GDP and in foreign trade where both the export and import are growing significantly.

The largest growth of the new contracts has been registered in the automotive industry, production of other means of transportation and computer and electronic and optical devices‘ manufacturing. In the automotive industry, the domestic contracts‘ growth tempo was larger than that of the foreign ones. In most other sectors, the foreign contracts‘ growth tempo was larger than that of the domestic ones.