Czech industrial production increased by 3% in October compared to the previous month and the annual figure was positive for the first time since May 2019, mainly driven by a strong recovery in car production.
Car production, which grew around 10% in October, was the biggest contributor to this growth (after adjusting for the effect of working days, growth would have been almost 14%). Production also accelerated in other major industrial segments, such as plastics and electrical equipment. However, the year-on-year decline intensified in machinery production, falling almost 10%. Thus the overall performance remained mixed and the recovery of industry was mainly driven by the automotive sector, which is trying to catch up after spring outages. Despite a solid October, however, production is still 16% lower YoY for the whole of 2020. New orders grew by 5% YoY in October and foreign orders accelerated by more than 8% year-on-year, or more than 15% in the case of cars.
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