Czech Republic: Industrial output growth slows in March
Latest reading: Industrial output expanded by 0.5% in month-on-month seasonally adjusted terms in March (February: +1.7% mom s.a.). The deceleration was mainly due to a fall in manufacturing output growth. In addition, electricity, gas, steam and air conditioning supply output fell. That said, mining and quarrying output rebounded.
On an annual calendar-adjusted basis, factory output grew 1.5% in March (February: +1.6% yoy). Meanwhile, the trend improved, with the annual average variation of industrial production coming in at minus 0.6% in March, up from February’s minus 1.0% reading.
Outlook: Our panelists have slashed their 2025 industrial production growth forecast so far this year due to U.S. import tariffs and heightened uncertainty regarding global trade. In particular, the automotive sector—which accounts for nearly one-tenth of GDP and about a quarter of manufacturing activity and merchandise exports—will suffer from increased U.S. tariffs on cars and car components effective from April. That said, industrial output is still expected to rebound from 2024 in 2025 as stronger EU demand will support production. Higher defense spending is an upside risk.