• Industrial production in June increased by 6.9% y/y after 7.5% growth in May. Deceleration of industry growth is not negative information taking into account lower number of working days. • Deficit of current account of balance of payment in June rose to CZK 13.3bn from CZK 5.4bn in May while market expected deficit of CZK 20bn. Net inflow of foreign direct investments reached CZK 9.6bn after May’s CZK 11.5bn. • Construction output in June declined by 4.4% in real terms and it is the first decline since last year’s April. Lower number of jobs contributed to worse result. After adjusting for this influence, construction declined by 3.0%. Also, high base rate from June 2006 played its part when construction added 10%. Besides this, construction has to fight with lack of qualified skilled workers which also means pressure on wages. • Growth of Japanese GDP in the 2Q07 reached 0.5% y/y, after 3.2% in the 1Q07. Result is below expectations and it lowers probability of Japanese interest rates hike. • According to Robert Holman of Czech National Bank, it is not necessary to increase rates because of higher growth of consumption and wages. The only reason could be further increase in ECB rates. Economy growth is, according to Holman, non-inflationary.