Czech Republic: Industrial output rebounds in February
Latest reading: Industrial output rebounded 1.7% in seasonally adjusted month-on-month terms in February (January: -0.5% mom s.a.). Looking at the details of the release, manufacturing output bounced back and energy supply gained momentum.
On an annual basis, industrial production rose 1.6% in calendar-adjusted terms in February (January: -0.8% yoy). Moreover, the trend improved, with the annual average variation of industrial production coming in at minus 1.0%, up from January’s minus 1.1%.
Outlook: Our panelists have slashed their 2025 industrial production growth forecast by 1.0 percentage points 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 seen rebounding from 2024 in 2025 as stronger EU demand and higher defense spending will support production.