Czech industrial production declines by 2.7% year-on-year in November

Industrial production in the Czech Republic fell by 2.7% year-on-year (y-o-y) in real terms in November 2024, while on a month-on-month (m-o-m) basis, it dropped by 1.5%, according to the Czech Statistical Office (ČSÚ). The value of new industrial orders also declined, decreasing by 1.4% y-o-y.

“In November, industrial production recorded another decrease, driven primarily by the manufacture of motor vehicles, trailers, and semi-trailers, particularly parts, as well as related industries such as rubber and plastic products, including rubber tires,” said Radek Matějka, Director of the Agricultural and Forestry, Industrial, Construction, and Energy Statistics Department at the ČSÚ. He noted that the long-term decline in machinery and equipment production continued, contributing further to the overall downturn.

Despite the overall decline, certain sectors provided positive contributions. The manufacture of non-metallic mineral products and other manufacturing saw growth due to extraordinary orders and increased pre-Christmas production.

The value of new orders in surveyed industrial activities decreased by 1.4% y-o-y in November, driven primarily by a 3.8% decline in non-domestic orders, while domestic orders rose by 3.1%. On a m-o-m basis, new orders dropped by 1.5%.

“A reduction in new industrial orders was most significantly influenced by the manufacture of motor vehicles, trailers, and semi-trailers, although this was partly due to a higher comparison base. Orders in machinery and equipment manufacturing fell by 10% y-o-y,” said Iveta Danišová from the ČSÚ’s Industrial Statistics Unit. Orders for basic metals also saw only minimal growth.

The average number of employees in the industrial sector fell by 2.0% y-o-y in November, reflecting the broader challenges facing the industry.

According to Eurostat, industrial production across the EU27 declined by 0.8% y-o-y in October 2024. Among member states, Belgium experienced the largest decrease (-7.9%), followed by Germany (-4.9%). Czech industry performed slightly better, with a 2.1% decline in the same period.

Conversely, Ireland and Denmark recorded the highest growth in industrial production, with increases of 15.2% and 8.6%, respectively. In terms of industrial activities, the EU27 saw the largest decrease in leather and related product manufacturing (-8.4%) and the highest growth in other manufacturing (+7.4%).

Eurostat is scheduled to release data for November 2024 on January 15, 2025, offering further insights into the broader European industrial trends.

Source: Český statistický úřad (ČSÚ)