09 Jul 2019
The Czech industrial production industry stayed strong in May, adding to an already solid growth of 3% in April. A boost in the automotive sector helped the production industry remain steady.
Despite being tipped to slow down by 1%, the industrial production industry saw a growth of 3.2% in May. Behind this growth was an increase in the automotive segment, which grew by 6.9% YoY. This growth was unexpected as car manufacturers assumed that there would be a decline in the amount of cars produced. Both local and foreign companies had a good rate in production.
The growth gained comes as a surprise also due to several doubts and concerns raised. Germany, for example, which has been a major trading partner has had issues in terms of local trade, with order falling by 2% in May, resulting in an annual decline of around 4%. The world industry also saw a decline in May, as reflected by China’s situation, which may have come across because of the trade war issues with the U.S.
The ongoing issues within the global economy may, in the near future, affect the domestic economies, meaning that countries should still be attentive and cautious.