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Czech National Bank cuts by 25bp as easing cycle comes to an end
8 hours ago
Czech industrial production increased by 1.4% year-on-year and by 0.4% month-on-month in March (chart), driven by electricity production and maintaining the growth trajectory to which it returned in February after a series of unconvincing results.
“The March industrial production was mainly contributed to by electricity, gas, steam and air conditioning supply, in which a lower comparison basis from the previous year was reflected,” commented Radek Matějka of the Czech Statistical Office (CZSO), which released the figures.
Matějka noted that “production in manufacturing was stagnating” and that “a slight recovery can be observed in building materials.
The value of new orders increased by 0.9% y/y, with both domestic and non-domestic orders up by 0.9%, and by 2.1% m/m. The average number of employees in the industry fell by 2.1% y/y.
The uptick in new orders was “thanks to new orders in the manufacture of machinery and equipment and in the manufacture of other transport equipment, in which significant long-term contracts were contracted,” CZSO’s Veronika Doležalová stated.
CZSO also reported that the Czech construction output grew by 12.1% y/y and by 3.5% m/m in March. The number of started dwellings grew by 15.9% y/y and the number of completed dwellings by 44.7%. The value of building permits fell, however, by 37.2%, amounting to CZK41.2bn (€1.65bn).
“The y/y decrease was influenced by a high comparison basis,” commented Matějka, and added that “after having modelled deduction of constructions with budgets over CZK1bn, the approximate value would be on the level of March 2024.”
The development was praised by local analysts as a revival of the construction sector, while they remain subdued concerning the prospects of industrial developments amid international trade uncertainties.
“Despite the repeat of mild growth we can hardly asses the result industry would be on revivle course,” UniCredit analyst Patrik Ružomberský told the Czech Press Agency (CTK), noting that manufacturing is stagnating, while other analyst expect negative developments as German market is stagnating.
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