Czech Republic: Industrial output growth ebbs in June
Industrial production expanded 1.7% year on year in working-day adjusted terms in June (May: +3.3% yoy). June’s reading was largely driven by a deterioration in manufacturing production growth. In contrast, electricity, gas, steam and air conditioning supply production gained steam.
On a seasonally-adjusted monthly basis, industrial production rose at a more moderate pace of 0.4% in June (May: +2.4% mom). Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at an over one-year low of minus 0.5% in June, contrasting May’s plus 0.2% reading.
Commenting on the outlook, Jiri Polansky, analyst at Erste Group, stated:
“The July development of leading indicators suggests a further cooling of demand, which should result in a decrease in production. This will probably continue in the following months as well, as both domestic and foreign demand could go down during autumn and winter. For this year, we expect roughly the stagnation of industrial production, however, there should be a recovery next year, which should continue in 2024.”