Czech industrial output increased in real terms by 1.1% year-on-year and dropped by 0.1% month-on-month.

The output was slightly above the 0.8% registered in September, but remains unconvincing amid the struggling German industry, the country's key economic partner.

“The increase in industrial production in October was the most contributed to by manufacture of fabricated metal products, manufacture of machinery and equipment, and manufacture of rubber and plastic products, e.g. tyres,” commented Radek Matějka of the Czech Statistical Office (CZSO), which released the figures.

The value of new orders rose by 2.9% y/y, with non-domestic new orders up by 6.5% and domestic new orders down by 3.5%. In m/m terms, the value of new orders dropped by 1.8%.

“The y/y growth of the value of new industrial orders was dominantly contributed to by manufacture of other transport equipment, where important long-term non-domestic orders were concluded,” stated CZSO’s Veronika Doležalová.

The industrial output remains closely followed by the local market in anticipation of signs of response to the tariffs US administration of Donald Trump imposed on EU imported goods.

Analysts surveyed by the Czech Press Agency do not expect the industrial output to revive significantly in the remainder of the year and project the overall growth of less than 1% this year.

“The October data did not bring about a significant surprise,” commented Vít Hradil, an analyst at Investika consultancy,” adding that the stagnating situation has persisted “since about 2017,” while also describing the output as solid in light of the situation in Germany.

CZSO also published the October figures in construction output, which maintained a strong growth of 7.1% y/y, down on the double digit growth of 12.8% registered in September.

Construction maintained y/y growth since November 2024, but in m/m terms it was down by 0.4%.

The construction of buildings drove the y/y growth CZSO highlighted, noting the approximate value of issued building permits rose by 7.3% y/y to CZK46.6bn.

“In October, construction of 3 457 dwellings started and the number increased by 34%, year-on-year, thanks to multi-dwelling buildings, especially in the Středočeský [Central Bohemian] Region, in Prague, and in the Jihomoravský [South Moravian] Region,” Petra Cuřínová, Head of the Construction Statistics Unit at CZSO stated. 

There were 2,914 completed dwellings, or an increase by 58% y/y, which came as a result of low comparison basis of last October, “when the number of completed dwellings was one of the lowest, historically,” CZSO noted.