Czech industrial production saw a minor surge in February following a three-month decline, with a year-on-year increase of 0.7%. On a month-on-month basis, there was a rise of 1.9%. Interestingly, the value of new orders skyrocketed by 8.8% year-on-year.
One of the key drivers of the slight increase in industrial production was the manufacture of motor vehicles. This result was partially influenced by a lower comparative base from February last year. Compared to last February, the production of motor vehicles increased by 9.2%.
The food or chemical industry also supported the year-on-year production growth. “Nothing fundamentally changes in the overall picture, and even though today’s numbers are a pleasant boost, we still stay very low,” commented Citfin economist Tomáš Volf.
The latest figures on industry in Germany, which is key for the Czech Republic, show a slight upward trend, but this is not yet reflected in Czech data. Industrial production in Germany increased by 2.1% in February compared to the previous month.
According to Volf, the Czech industry’s Problem is its dependence on exports and cars. The average registered number of employees decreased by 2.1% compared to last February, while the value of new orders from industrial companies increased by 8.8%.