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Vladimír Urbánek (Kurzy.cz)
Macroeconomics  |  10.12.2012 10:38:59

Comments to the development of the industry - change for the better only optically


iPoint.cz Weak domestic demand upturn definitely bring. However, you can not fully rely either on demand from abroad, which stretches Czech industry in recent years. For further development of the industry will be key, as will thrive rapidly developing countries led by China.

Industrial production in October, while increased by 4.1%, but only because of the higher number of working days. Adjusted for calendar effects, industrial production fell by 3.3%.

As a positive message can be a mark increase in new orders and a 5.3% year on year, which is significantly better than in previous months. While demand continues to come mainly from abroad, but in October there was an increase in demand from the domestic as well as, an increase of 3.3%. I can find better statistics to a large extent explained by significantly higher number of working days this October (3 days extra). The increase in new orders is indeed a pleasant surprise, but from the same number can not be done prematurely optimistic conclusions. Negative contrast can be seen in the decline in employment in the industry - by 0.5% yoy.

Outlook for next month remains slightly pessimistic. Weak domestic demand upturn definitely bring. However, you can not fully rely either on demand from abroad, which stretches Czech industry in recent years. For further development of the industry will be key, as will thrive rapidly developing countries led by China.

 

Miroslav Novak
Analyst AKCENTA

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