The foreign trade deficit in July reached CZK 0.7bn, which is fully in line with expectations. In addition, July’s dynamics were better than expected. Imports increased by 20.7% y/y while exports were up by 18.7% y/y. The worsening of the trade balance in July is a seasonal thing [non-adjusted] with exports are being held back by vehicles. The Czech Republic is still benefiting from an automotive industry upswing. Also significant are electronics and telecommunication equipment. The balance of trade was helped superficially by the koruna strengthening against the main trading partner currencies.