Czech industrial production increased by 0.7% y/y in February

Czech industrial production increased by 0.7% y/y in February
/ bne IntelliNews
By Albin Sybera April 9, 2024

Czech industrial output increased by 0.7% year-on-year and 1.9% month-on-month in February.

The country’s robust car sector pushed an otherwise unconvincing result into growth, ending a three-month skid in industry. The value of new orders increased by 8.8% y/y and by 4.8% m/m.

“Industrial production slightly increased in February, namely thanks to manufacture of motor vehicles, trailers and semi-trailers,” commented Radek Matejka of the Czech Statistical Office (CZSO).  

“The result was partially influenced by a lower comparison basis from February. Also, food and chemical industries contributed to the slight growth,” Matejka added.

With a 12.7% y/y drop, the manufacture of machinery and equipment had the most negative impact on the overall performance of the industry. Warm weather led to a decrease of a tenth in the output of electricity, gas, steam, and air conditioning supply, and CZSO noted an accompanying decrease in gas consumption and production of coal plants. Coal mining decreased by nearly one-quarter y/y.

“February figures in the industry bring only weak signs of its recovery”, UniCredit Bank economist Patrik Rozumbersky was quoted as saying by Czech Radio, while the head economist at Cyrrus consulting company, Vit Hradil, stated that “the volume of production remains on the values we were accustomed to already in 2018".  

Czech statisticians also released February figures in construction, where the output increased by 3.6% y/y and by 4.8%.

The February growth  “was driven by civil engineering”, observed Matejka, adding that “the growth of which was also contributed to by a low comparison basis and favourable weather”.

Civil engineering output increased by 19.4% y/y, while the output in the building construction sector decreased by 1.5%.

The number of started dwellings decreased by 47.2% y/y to 1,861, and the number of completed dwellings increased by 24.3% y/y to 3,331. The increase was registered in all categories except for family houses. The approximate value of permitted constructions decreased by 15.9%.      

“The February decrease in the approximate value of permitted constructions was due to repairs of transport infrastructure and new construction of residential buildings, where no construction exceeding CZK1bn was permitted”, explained Petra Curinova, Head of the Construction Statistics Unit at CZSO.