In September, industrial production decreased by 5% on an annual basis

Industrial production in September decreased by 5.0% on an annual basis in real terms. It was 1.8% lower on a monthly basis. The value of new orders decreased by 5.2% on an annual basis. In September 2023, industrial production was 1.8% lower in real terms on a monthly basis and had decreased by 5.0% on an annual basis. “The production of electricity and gas, machinery and equipment production, and the production of other non-metallic mineral products contributed the most to the 5% annual production decline. However, the industry in all sectors is facing a production decrease,” says Radek Matějka, Director of the Department of Statistics for Agriculture, Forestry, Industry, Construction, and Energy at CZSO. The outcome in the energy sector was influenced by planned shutdowns of power plants as well as exceptionally warm weather. Reduced demand from the construction sector continued to impact the production of construction materials and plastic products for construction. On an annual basis, production increased only in the pharmaceutical industry, the beverage and clothing industry, and to a minimal extent in other manufacturing industries. The value of new orders at current prices in the monitored sectors decreased by 5.2% on an annual basis in September 2023. Foreign orders decreased by 1.5% on an annual basis, while domestic orders decreased by 12.2%. “In September, the value of new industrial orders decreased again, similar to the production, affecting most of the monitored sectors. The largest decline was recorded in the production of computers, electronic and optical devices, basic metals production, metallurgy, and foundry, as well as machinery and equipment production,” says Veronika Doležalová, Director of the Department of Industrial Statistics at CZSO. New orders only increased in the pharmaceutical and clothing industries, while there was very modest growth in the production of motor vehicles. On a monthly basis, the value of new orders increased by 3.4%. In September 2023, the average number of registered employees in the industry decreased by 2.2% on an annual basis, and their average gross monthly nominal salary increased by 7.2% on an annual basis. According to data published by Eurostat, in August 2023, industrial production in the EU27 decreased by 4.4% on an annual basis. The largest annual declines were recorded in Ireland (27.3%) and Slovenia (12.3%). Czech industry decreased by 1.7%, while German industry declined by 2.3%. Conversely, Slovak industry grew the most (4.7%), along with Danish industry (3.5%).