The Czech industry experienced an accelerated annual decline to five percent in September, up from August’s 1.7 percent. Industrial production fell for the third time in a row. The value of new orders also saw a year-on-year decrease of 5.2 percent, as announced on Monday by the Czech Statistical Office (ČSÚ).
The production of electricity and gas, machinery and equipment, and other non-metallic mineral products contributed most to the five percent year-on-year decline in production. “The decline in production is a challenge being faced by the industry across all sectors,” said Radek Matějka of the ČSÚ about the results.
Similar to the decline in production, the decrease in the value of industrial orders also affected most sectors. The steepest decline was seen in the production of computers and electronics, metals and metallurgy, and machinery.
Industrial production fell by 1.8 percent month over month, continuing the trend of a weakening industrial sector within the Czech economy. This has been a concern for economists and policymakers.
The decline in new orders suggests a lack of future demand for the industry, which could lead to job losses and further production declines if the trend is not reversed.
In response, industry stakeholders and policymakers may need to consider measures to stimulate demand and support the struggling sectors. This could include financial incentives, infrastructure investments, or initiatives to promote innovation and digital transformation in the industry.