Czech industrial production declines slightly in January 2025
Industrial production in the Czech Republic recorded a slight decline in January, falling by 0.6% year-on-year and 0.3% compared to December 2024. The value of new orders also decreased by 1.0% year-on-year, reflecting a broader slowdown in the sector.
According to Radek Matějka, Director of the Agricultural and Forestry, Industrial, Construction, and Energy Statistics Department at the Czech Statistical Office (CZSO), the January results were only marginally below the levels recorded in both the previous month and January 2024. The most significant impact came from the manufacture of motor vehicles, trailers, and semi-trailers, where a continuing decline in the production of parts and accessories contributed to the overall decrease. Additionally, the completion of long-term orders led to a reduction in the manufacture of other transport equipment, particularly rail vehicles.
Despite the overall decline, some sectors recorded growth. Production in the manufacture of computer, electronic, and optical products increased, supported by a lower comparison base from January 2024.
The value of new industrial orders at current prices fell by 1.0% year-on-year in January. Non-domestic orders decreased by 1.3%, while domestic orders saw a smaller decline of 0.4%. Compared to the previous month, the overall value of new orders dropped by 2.3%. Veronika Doležalová, Head of the Industrial Statistics Unit at CZSO, attributed the decline primarily to weaker demand in the manufacture of motor vehicles, trailers, and semi-trailers. The chemical and basic metals industries also contributed to the decrease. However, new orders in the manufacture of computer, electronic, and optical products showed an upward trend, along with machinery and equipment production.
Employment in the industrial sector continued to shrink, with the average registered number of employees declining by 2.1% year-on-year in January.
A broader European perspective, based on Eurostat data for December 2024, shows a similar trend across the EU27, where industrial production declined by 1.7% year-on-year. Austria and Italy recorded the sharpest contractions, with declines of 9.5% and 7.1%, respectively. Germany’s industrial output fell by 4.0%, while Czech industry contracted by 2.7%. The largest decline across the EU was observed in the manufacture of motor vehicles, trailers, and semi-trailers, which fell by 14.6%. Conversely, the manufacture of basic pharmaceutical products and pharmaceutical preparations experienced the highest increase, growing by 21.6%.
Source: Czech Statistical Office
