Czech Industrial Output Rises 3.1% Annually in July, Falls 1.1% Monthly

Key Facts

1Real industrial production rose 3.1% annually and fell 1.1% monthly in July.

2Goods trade recorded a deficit of 8.5 billion Czech koruna in July.

3Construction output rose 1.8% annually, while civil engineering declined 3.4%.

4Real retail sales excluding vehicles rose 4.8% annually and 0.6% monthly.

The Czech Statistical Office published July industry data on September 7, showing real output rose 3.1% annually after working-day adjustment but fell 1.1% monthly after seasonal adjustment. New industrial orders at current prices increased 7.2% annually. Foreign orders rose 15.7%, while domestic orders declined 6.6%. Motor vehicles and electricity and gas supply made the largest contributions to annual growth, while average registered employment fell 1.0%.

Preliminary trade data published on September 7 showed a July deficit of 8.5 billion Czech koruna, as the balance deteriorated by 5.0 billion from a year earlier. Exports rose 3.9% to 390.2 billion Czech koruna, while imports increased 5.2% to 398.7 billion. Wider deficits in computers, electronic and optical products, crude petroleum and natural gas weighed on the balance. The January–July surplus was 94.0 billion Czech koruna, down 32.3 billion annually, on a current-price basis.

In construction, output rose 1.8% annually in July and the trend-cycle measure increased 0.4% monthly. Building construction grew 4.9%, while civil engineering declined 3.4%. Building permits rose 4.0% to 5,622, but permitted floor space in new buildings fell 16.9% because of a high comparison base for non-residential buildings. Starts increased 11.7% to 2,935 dwellings, while completions rose 46.1% to 3,328.

For domestic-demand context, separate data published by the office on September 4 showed real retail sales excluding vehicles rose 4.8% annually after working-day adjustment and 0.6% monthly after seasonal adjustment. Non-food sales increased 6.6% annually, fuel sales 4.0% and food sales 2.7%. Mail-order or internet sales rose 12.4% annually and contributed most to retail growth. The office classified the July data as preliminary, meaning they may be revised.

In monetary-policy context, the Czech National Bank kept its two-week repo rate unchanged at 3.75% on August 6. On August 6, the bank also published its Summer 2026 forecast, based with some exceptions on information available through July 24, projecting gross domestic product growth of 2.2% in 2026 and 2.7% in 2027. It projected average inflation of 2.0% in 2026 and 2.5% in 2027. The forecast therefore predates the industry, trade and construction data published on September 7, and those releases do not constitute a new policy decision or forecast revision.