Czech industrial production drops 3.0% year-on-year in December, auto sector hit hardest

Industrial production in the Czech Republic fell by 3.0% year-on-year in December 2024, primarily due to a decline in automobile manufacturing and electrical equipment production, according to the Czech Statistical Office (CZSO). However, in a month-on-month comparison, industrial output increased by 1.6%, signaling short-term recovery trends.

Radek Matějka, Director of the Agricultural and Forestry, Industrial, Construction, and Energy Statistics Department at CZSO, attributed the annual decline to the high comparison base from 2023, particularly in the manufacture of motor vehicles, trailers, and semi-trailers. A slowdown in the manufacture of electrical components for the automotive industry further contributed to the negative trend. Meanwhile, the food and beverage sector continued its modest growth, and certain industries, such as repair and installation of machinery and production of non-metallic mineral products, benefited from fluctuations in output and end-of-year invoicing adjustments.

The value of new industrial orders remained flat in December 2024 compared to the previous year, with non-domestic orders rising by 0.5% while domestic orders declined by 1.0%. Month-on-month, the total value of new orders dropped slightly by 0.2%.

According to Veronika Doležalová, Head of the Industrial Statistics Unit at CZSO, the most significant year-on-year decline in new orders was observed in the automotive and electrical equipment manufacturing sectors. However, there was growth in orders for computer, electronic, and optical products, and partial long-term contracts were concluded in machinery and equipment manufacturing.

The average number of registered employees in the industrial sector decreased by 2.0% year-on-year, reflecting broader economic pressures on the manufacturing workforce.

According to Eurostat, industrial production across the EU27 decreased by 1.7% year-on-year in November 2024, with the largest declines recorded in Croatia (-6.6%) and Ireland (-5.6%). The Czech industrial sector contracted by 2.7% in November, while Germany saw a 3.3% decline. The hardest-hit industry across the EU27 was leather and related products (-12.9%), while other manufacturing recorded the highest growth at 7.8%.

Eurostat is set to release December 2024 industrial production data on February 13, 2025, providing further insights into regional manufacturing trends.

Source: Czech Statistical Office