Czech industry is growing more slowly
Industrial production in the Czech Republic rose by 1.3% in February, continuing to lose momentum. Following a revised 2.7% increase in January, this marks the third consecutive month of deceleration—despite sustained growth since November.
Positive momentum came primarily from the automotive industry and the manufacture of metal products. The energy sector, however, had a dampening effect: planned shutdowns at power plants, in particular, weighed on performance.
The picture is also mixed when it comes to incoming orders. The total value of new orders rose by 1.6% year-over-year, with demand from abroad increasing by 2.5%. Domestic orders, however, declined slightly by 0.3%. On a month-over-month basis, the order volume fell significantly by 6%, following unusually high figures in January, particularly in the automotive industry.
Growth in new orders was driven primarily by the machinery and plant engineering industry, particularly due to stronger demand from the energy and construction sectors. By contrast, there were declines in the automotive industry as well as in the chemical, paper, and textile sectors.
At the same time, the construction industry showed significantly stronger growth. Construction output rose by 4.1% year-on-year in February, after having declined in January. On a month-on-month basis, it increased by 0.8%.
The main driver of growth was building construction, where output rose by 7.8%. Civil engineering—including infrastructure projects such as road, energy, and telecommunications construction—recorded a decline of 5.5%, however.
Construction activity also picked up noticeably: the number of building permits issued rose by 3.8%. Residential construction performed particularly well, with a 45.9% increase in projects started and a 20.8% rise in completed units.
