Czech industrial output rose 3.3% y-o-y in May thanks to improved numbers from the automobile sector. The Czech Statistics Office attributed the upturn for car manufacturers to a mild improvement in supply chain blockages. Furniture and leather goods production jumped 20% while pharmaceuticals were up 15%. Construction output growth slowed from 4% in April, but its 3.3% showing was the 13th consecutive month the sector made gains.
Analysts contacted by Czech Television were pleasantly surprised by May’s positive figures, but most poured cold water on hopes of avoiding recessions. “In the coming period, there could be signs of reduced pressure in supply chains, which was reflected in the automobile sector,” said UniCredit Bank’s Patrik Rožumberský. “On the other hand, production will be hit by the rising prices of inputs combined with falling demand.”
Deloitte’s Filip Pastucha said inflation is eating away at consumer strength and would hurt overall consumption. Meanwhile, the uncertainties caused by the war, including the energy crisis, is casting a pall over the future. “We’re expecting industrial growth of roughly 1.5% for the year.” Growth in 2021 reached 6.6% thanks to the pandemic-struck 2020.
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