The Czech economy delivered a mixed performance in July, with strong gains in construction and industry offset by the country’s first monthly trade deficit of the year, according to data from the Czech Statistical Office (CZSO). Construction output rose by 10.1% year-on-year, maintaining double-digit growth for a second month. Compared with June, activity increased by 1%. Building construction expanded by 9.2% and civil engineering by 11.5%. The value of building permits surged 37.9% to CZK 54.2 billion, supported by approvals for large transport infrastructure projects. However, residential activity softened: housing starts fell by 9.2% to 2,628 units, while completions declined by 13.4% to 2,353. Industrial production grew by 1.8% year-on-year and 0.8% month-on-month, driven mainly by motor vehicle manufacturing, rubber and plastics (particularly tyres), and fabricated metal and electrical equipment. New industrial orders rose by 6.6%, with domestic demand growing faster (+13%) than foreign orders (+2.9%). The automotive sector played a key role, posting a 15% increase in orders. Despite the gains, industry employment fell by 1.9% year-on-year. Foreign trade, by contrast, ended in a deficit of CZK 1.7 billion, the first negative balance in 2025. Exports rose by 4.7% to CZK 375.2 billion, while imports climbed 3.1% to CZK 376.9 billion. The deficit was largely due to weaker balances in fabricated metal products, agriculture, and basic metals. Motor vehicles and machinery exports provided strong support, contributing more than CZK 12 billion in additional revenue. The cumulative trade surplus for January–July stood at CZK 136.7 billion, down CZK 9.4 billion from last year. Across the EU27, construction and industry also reported moderate gains in June, though Czech industrial output (+0.2%) trailed the regional average. Eurostat will release July data later in September.