Czech industrial output deepened its decline after it decreased by 3.2% year-on-year and by 2.2% month-on-month in May. The value of new orders increased by 0.8% y/y.  

The country’s industry registered a decline of 0.4% y/y in April and of 2.7% y/y in March. Local market analysts pointed out that it has been the deepest drop in industry since last September.

“The decrease of industrial production in May was influenced the by manufacture of motor vehicles, trailers and semi-trailers, in which this year’s – for the time being – weakest month met with a higher comparison basis,” commented Veronika Dolezalova, Head of the Industrial Statistics Unit of the Czech Statistical Office (CZSO).

Dolezalova added that “a decrease in manufacture of machinery and equipment deepened; a weaker demand mainly affected manufacture of agricultural and forestry machinery and manufacture of non-domestic cooling and ventilation equipment”.

CZSO highlighted that the manufacture of other transport equipment dropped by a quarter y/y, largely influenced by a high comparison basis from May 2023. The manufacture of basic metals was down by a tenth, while production picked up in the manufacture of computer, electronic and optical products, manufacture of food products, and manufacture of beverages. Electricity, gas, steam and air conditioning supply increased by 7% y/y, which was affected by a low comparison basis.   

An analyst at Cyrrus consulting company, Vit Hradil, told Czech Television (CT) that “difficult times in industry continue” and that in m/m terms, 13 of 22 monitored sectors remain in the red and that this cannot be explained by statistical effects alone.

Hradil said that the output of the country’s industry is similar to April 2017, while Petr Dufek, at Banka Creditas, pointed out the two-month-long skid in the key automobile industry. The skid is due to “a high comparative basis,” but also due to “forced drops as a result of missing inputs”, Dufek was quoted as saying by CT.  

CZSO also released May figures from construction, which decreased by 6.8% y/y and 5.1% m/m.

The approximate value of construction permits dropped by 9.2%. At the same time, the number of started dwellings fell by 18.2% y/y and the number of completed dwellings was down by 2.1% y/y.

“Categories of modifications to multi-dwelling buildings and non-residential buildings contributed to the decrease, whereas the number of newly completed family houses and multi-dwelling buildings increased,” commented Drahomira Duskova from the Construction Statistics Unit at CZSO.

The building construction decreased by 7.1% y/y and civil engineering construction decreased by 6.3% y/y.