Czech industrial production rises more than expected in March 2014 on auto sector

By bne IntelliNews May 7, 2014

Czech industrial production increased for the ninth straight month in March 2014 rising by 8.7% y/y, supported by an expanding auto sector, which is the backbone of the export-focused economy, data from the statistics office showed. The annual growth quickened from 6.7% in February and exceeded market expectations for a 8% rise.

The seasonally adjusted industrial production edged up by 0.3% m/m in March, easing from a 1.7% m/m hike the month before.

The growth in March was mainly supported by car production that expanded at the fastest pace in seven months going up by 26.3% y/y and following a 16.1% rise in February. Other sectors that contributed the most to the annual hike were manufacture of fabricated metal products (contribution +1.2pps, growth by 13.7% y/y) and manufacture of other non-metallic mineral products (contribution +0.8pps; growth by 23.1% y/y). The steepest negative contribution of 0.3pps came from electricity, gas, steam and air conditioning supply that that registered a 2.2% annual drop.

Overall, the manufacturing industry expanded for the ninth month in a row in March with the annual growth quickening to 11% from 8.5% in February. After contracting for two straight months, the mining and quarrying industry expanded by 5.9% y/y in March. The annual decline in the utilities sector deepened to 2.2% from 0.8%.

Industrial production grew by 7.1% y/y in the first three months of 2014.

Sales from industrial activity advanced by 11.8% in March, slightly above February’s rise of 11% y/y and driven by a 19.8% hike in export sales. New industrial orders continued to grow at a double-digit pace albeit weakening to 16.6% y/y in March from 19.9% y/y in February on a softer growth in orders from abroad.

IntelliNews comment: The ninth straight increase in Czech industrial output in March signals that the economy is gaining strength after exiting a record-long recession in 2013 and is on track to return to growth in 2014. Last year Czech industrial production edged up by 0.5% from 2012 when it shrank by 1.2%. Rising new orders are a positive sign that the sector will continue improving in the next months driven by growing foreign demand. Foreign orders have been rising at a double-digit annual pace since July 2013.

One of the important forward-looking indicators, the purchasing managers index (PMI), also shows that the recovery is gaining ground with the index staying above the 50-mark that signals expansion for the 12th consecutive month in April.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

Czech PM accepts new nominee for finance minister

Reducing the political tension in the country a little, Czech Prime Minister Bohuslav Sobotka accepted on May 17 the nomination of a new finance minister from coalition partner Ano. Meanwhile, ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss