Industrial production in Czechia slowed its year-on-year growth to 7% in July from 11.4% in June, according to data released by the Czech Statistical Office (CSO) on September 6. The value of new orders increased by 18.9% y / y.
“As in previous months, the volume of orders from industrial companies has increased considerably. In monthly comparison, the volume of new industrial orders has already increased for the third time in a row and reached the highest values in the observed time series, ”said Veronika Dolezalova, head of the industrial statistics unit at the CSO.
In real terms, industrial production in July increased by 2.1% m / m. Production increased in most sectors, with base metal manufacturing increasing the most by 28.1% year-on-year. Metal product manufacturing and electrical equipment manufacturing also increased significantly by 14.5% and 14.3% respectively.
According to the CSO, the results still reflect the coronavirus outbreak that significantly affected the industry last year. “Relatively high growth rates were still partially influenced by a weaker comparison basis. However, there was also an increased demand for some manufactured products, for example steel, ”commented Radek Matejka, Director of the Department of Agriculture and Forestry Statistics, Industry of the CSO. , Building and Energy.
CSOB analyst Petr Dufek considers the situation of Czech industry to be very favorable. “However, the sector’s future growth opportunities are limited by problematic international logistics and global shortages of certain components. Overall, the industry has to cope with a rapid increase in the prices of inputs (raw materials and energy), which it then translates more or less well into its prices, ”he said.
Radomir Jac, analyst at Generali Investments, estimates double-digit growth in industrial production in 2021. According to him, the performance of the industry will benefit from strong orders and the statistical effect of a still favorable benchmark will help in terms of annual for most of 2H21. On the flip side, however, complications in sourcing necessary raw materials and components could cause production fluctuations in the coming months and hamper overall growth, Jac told the Czech News Agency.