Czech industry continues to deliver solid results

The industrial sector grew 4,5 percent in a year-over-year comparison in February.

The production and volume of contracts growth confirms that the economic recovery in the Czech Republic is continuing steadily and that the last months‘ optimistic expectations were justified, the Confederation of Industry’s analyst Bohuslav Čížek wrote. Both indexes belong to the group of positively acting factors influencing the recent development of the Czech economy.

The February year-over-year industrial production‘s real growth rate of 4,5 percent as well as the 0,6-percent month-over-month seasonally adjusted growth rate show that the industry was capable to retain its key role within the Czech economy. These results build on the last year's solid growth tempo that has shifted the comparative base to a higher level.

The industry’s share of value added, within all economic branches, has raised to 32,6 percent in 2014. The overall positive evaluation of the industry‘s results has been furthered by the fact that this year’s numbers are not distinctly different from the average working day-adjusted data from 2014 that made up 4,8 percent.

According to Čížek, this year’s optimistic expectations are strengthened by the contracts‘ growth value of ten percent as well. The new foreign contracts raised 11,7 percent, the new domestic ones 6,5 percent.

These optimistic expectations have been confirmed by the recent survey organized by the Confederation of Industry among the non-financial companies and valid for the first quarter of 2015 as well as by the March PMI data.