Industrial production in June increased by 6.9% y/y after seeing 7.5% growth in May. The deceleration in industry growth is not a negative, considering the lower number of working days in the month. Industry is benefiting from strong domestic demand and the boom in Western Europe. Most industry segments were doing well.
Today’s statistics do not change our view on the current strength of economic growth in the Czech Republic. The same applies to our outlook on interest rates.