| Czech industrial output in September 2011 rose at its slowest pace since December 2009 and was below analyst expectations as weak domestic demand curbed growth, data from the statistics office said. Industrial production grew by 2.5% in September, following a 5.9% rise in August. Analysts polled by Reuters were expecting a 3.4% hike. Output, adjusted for seasonal factors, edged up 0.1% m/m. Motor vehicles were the main growth driver, expanding by 22.1% y/y in September, almost three times faster than Augusts rise of 7.2% y/y. The second biggest contributor was the manufacture of rubber and plastic products registering an annual growth of 8.1%. The steepest decline of 17.8% was registered in the production of computer, electronic and optical products. Sales in current prices increased by 0.9% y/y in September, much slower than the 6% rise a month earlier. New industrial orders advanced 2.6%, after declining by 3.4% y/y in August. The value of foreign orders increased by 12.7% y/y, following a rise of 3.3% in the previous month. Domestic orders declined by 12.4% in September, compared to a decrease of 14.1% in August. The number of industry employees rose by 2.5 y/y and the average monthly wage moved up 3.9% y/y to CZK 25,014. IntelliNews comment : The industrial output growth is expected to further weaken in the next few months amid concerns that the deepening euro debt crisis and slowing European growth will hurt Czech economy. In addition, domestic demand is not expected to recover soon curbed also by the governments austerity measures. |
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