Czech industrial output dropped by 2.7% year on year and 1.5% month on month, extending the y/y drop to two consecutive months after it fell by 2.1% y/y in October.

“The following contributed the most to it: manufacture of motor vehicles, trailers and semi-trailers, especially of parts thereof, and also a […] related economic activity of manufacture of rubber and plastic products” such as rubber tyres, commented Radek Matějka of the Czech Statistical Office (CZSO).

“A long-term decrease in manufacture of machinery and equipment further continued,” he added. Positive contributions came from the manufacture of non-metallic products and other manufacturing.    

The value of new orders dropped by 1.4% y/y when domestic new orders grew by 3.1% and non-domestic orders fell by 3.8%.

“A decrease in the value of new industrial orders was contributed to the most by the manufacture of motor vehicles, trailers and semi-trailers; however, this result was partially influenced by a higher comparison basis,” CSZO’s Iveta Danišová stated.

She added that “the value of new orders in the manufacture of machinery and equipment decreased by a tenth y/y.”

The figures came as a disappointment to local market analysts, who now expect the overall industrial output in 2024 to decline.

“The industry will likely finish the whole year 2024 in decline of over one per cent and the outlook for the beginning of this year is not really favourable,” Cyrrus analyst Vít Hradil was quoted as saying by the Czech Press Agency (ČTK).

Given the continued suppressed performance of Germany, Czechia’s key destination market, the industrial output in 2025 could stagnate, or show signs of revival only in the second half of the year.

CZSO also published figures from the construction, which returned to growth of 2.5% y/y and by 1.8% m/m in November after falling by 3.6% y/y in October.

 “The y/y increase by 2.5% was influenced, to a certain extent by a low comparison basis from November 2023, when the highest average precipitation total for November has been recorded since the year 1961,” explained Petra Čuřínová of CZSO.

The approximate value of constructions with issued building permits amounted to CZK43bn, which is an increase of 2.6% y/y. Building construction increased by 1.9% and civil engineering construction by 3.4%.