Czech industrial production rises more than expected in Sept driven by auto sector.

By bne IntelliNews November 6, 2013

Czech industrial production increased for the third straight month in September 2013 and at its fastest pace in more than two years indicating that the economy that exited a record-long recession in Q2 is on track to recovery driven by an expanding auto sector. The output rose by 7.1% y/y in September, following a 1.6% expansion in the previous month, data from the statistics office showed. The reading exceeded market expectations for a 6% growth according to a Reuters poll.

The seasonally adjusted industrial production went down by 2.8% m/m in September, after a 4.7% m/m hike in August. In working day-adjusted terms, the output posted a 2% annual growth. There were two more working day than in the same month of the previous year.

The growth in September was mainly supported by car production as the sector registered its second straight month of a double-digit growth. Other sectors that contributed the most to the annual hike in September were manufacture of fabricated metal products (contribution +1.2 pps, growth by 13.8% y/y) and production of electrical equipment (contribution +1.2 pps, growth by 16.0% y/y). Industrial production declined the most in electricity, gas, steam and air conditioning supply (contribution -0.5 pps, drop by 4.0% y/y), mining and quarrying (contribution -0.3 pps, drop by 8.3% y/y) and manufacture of chemicals and chemical products (contribution -0.1 pps, drop by 4.5% y/y).

Overall, the manufacturing industry expanded for the third month in a row in September growing by 9.4% y/y, much faster than the 2.5% hike in August. The annual drop in mining and quarrying industry softened to 8.3% from 14.1% and the utilities sector swung into a 4% decline in September from a 1.8% yearly rise in August.

Sales from industrial activity advanced by 7.9% in the ninth month of 2013 after expanding by 4.8% y/y a month earlier. New industrial orders also improved for the third consecutive month in September posting a 16% annual rise, the strongest since January 2011 as both domestic and foreign orders increased – by 10.7% y/y and 18.9% y/y, respectively.

IntelliNews comment: The third straight increase in Czech industrial output in September suggests that the economy is on track to recovery after in Q2 it grew for the first time in seven quarters. The recently announced Sept retail sales that grew by 3.7% y/y also point in that direction. Rising new orders are a positive sign that the sector will continue improving in the next months. One of the important forward-looking indicators, the purchasing managers index (PMI), also gives hopes for a recovery with the index showing a continued improvement in business conditions in the country.

Related Articles

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Poland struggles in bid to oust Tusk

The Polish government spent March 6 canvassing for support for its alternative candidate for the European Council presidency to compatriot Donald Tusk. However, it met little success, even in its own ... 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