Czech industrial production rose 4% year-on-year in June, marking its strongest performance in six months. Growth was driven by a broad range of sectors, particularly transport equipment, metalworking, and electronics manufacturing. At the same time, new industrial orders increased significantly, with foreign demand playing a major role in strengthening the sector's outlook.

The country's foreign trade balance remained positive, reaching a surplus of CZK 15.5 billion. Exports continued to grow, supported by strong sales of motor vehicles, machinery, and electricity. However, the surplus was smaller than a year earlier as imports rose at a faster pace, with electronics and energy related products weighing on the overall result.

Meanwhile, construction output grew by 2% compared with June last year, a slower pace than in May. Residential and commercial building activity remained the main source of growth, while infrastructure and engineering projects declined after previous gains. Despite the moderation, construction activity has continued its year-on-year expansion since late 2024.

The housing sector delivered some encouraging signs. The number of housing starts jumped by more than 50% year-on-year, supported by strong activity in family home construction. However, the number of completed apartments fell, highlighting ongoing supply challenges. Overall, June data suggest that manufacturing remains the key driver of Czech economic growth, even as construction shows signs of cooling.

Source: ceskenoviny  

Author: CzechTrade and CzechInvest Office in New York