Czech industrial production increased by 1.5% year on year and by 1.7% month on month, returning to mild growth after a series of unconvincing results.

The figures beat local market expectations, with analysts expecting a downward trajectory by April in response to the US tariffs the Donald Trump administration introduced.  

“The February growth of industrial production was mainly influenced by a low comparison basis from February 2024 in electricity, gas, steam and air conditioning supply that was influenced by climatic conditions,” Radek Matějka of the Czech Statistical Office (CZSO) commented. “Production of manufacturing stagnated y/y,” Matějka added.  

The value of new orders dropped by 1.3% y/y in a second month of consecutive skid. Non-domestic orders were down by 0.3% and domestic ones by 3.1%.

“A moderate decrease was recorded by the automotive industry, an influence of a high comparison basis was reflected in a decrease of new orders in the manufacture of other transport equipment,” CZSO’s Veronika  Doležalová commented.

CZSO noted that in the manufacture of machinery and equipment, industrial orders increased for the third consecutive month in February.

Radomír Jáč of Generali Investments told Czech Television (CT) that the industry could still do well in March, but that “it is clear that the impact of tariffs on European industry will be negative. The question is how deep this impact will be and how fast it will be felt.”

CZSO also published figures on construction output in February, which grew by 0.9% y/y and dropped by 0.6% m/m.

Matějka stated that “the stagnation was largely influenced by a higher comparison basis.”

The approximate value of issued building permits amounted to CZK45.6bn (€1.8bn) and rose by 30.2%. The number of started dwellings rose by 40.1% y/y, and the number of completed dwellings fell by 49.5%.

“The February growth of the approximate value was thanks to granting building permits to a higher number of constructions with budgets of over CZK1bn. However, even after having modelled their deduction, we still recorded an increase in the value by a tenth,” Head of the Construction Statistics Unit at CZSO Petra Čuřínová pointed out.