The Czech industrial sector is facing ongoing challenges as production continues to decline. According to the latest data from the Czech Statistical Office (ČSÚ), industrial output in June fell by 3.4% year-on-year, a slight acceleration from May’s 3.2% decrease.
Despite the overall downturn, the month-on-month figures have a silver lining. Czech industry showed a modest 0.7% improvement compared to the previous month, indicating some resilience in the face of economic headwinds.
The decline in industrial production is attributed to several factors. Veronika Doležalová, head of the ČSÚ’s industry statistics department, points to a higher comparative base, particularly in the automotive and transportation equipment sectors. Additionally, there’s been a prolonged decrease in machinery and equipment manufacturing and basic metals, metallurgy, and foundry industries.
However, it’s not all doom and gloom. Positive contributions to the year-on-year figures came from electricity and gas production and distribution and the chemical and food industries. The clothing and leather industries also showed high growth rates, largely due to a low comparative base from the previous year.
In a promising development, the value of new orders in June increased by 4.1% year-on-year. Foreign orders saw a 4.8% rise, while domestic orders grew by 2.8%. Compared to May, the value of new orders was up by 6.1%. This uptick in orders, particularly in the automotive sector, could signal a potential turnaround for the industry in the coming months.