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Manufacturing increased by 5.5% in August... and other news

Manufacturing increased by 5.5% in August... and other news

12.10.2007 11:56
Autor: Tomáš Vlk, Patria Finance

Manufacturing increased by 5.5% in August following an increase of 11.5% in July. This slow-down is caused by a different number of working days. Vehicle manufacturing remained the industry drafter, followed by connected manufacturing and also electronics.

Construction manufacturing has resumed a growth of year-to-year 3.3% after a two-month decrease. Engineering construction has continued to decrease while surface works have increased. 

The growth of industrial production prices accelerated in September to a year-to-year rate of 4.0%. Month-to-month prices have increased by 0.1%. Metals and metallurgical products were the major contributors, followed by the prices of electricity, gas and water. Food has also added to this increase.

According to Mojmír Hampla from CNB, the bank will probably continue to raise rates. Inflation is kept by consumer costs. Domestic anti-inflationary factors will be balanced neither by strengthening of the Czech crown nor by the outside environment.

However, Hampl’s colleague Vladimír Tomšík thinks that the strong crown may slow economic growth and reduce the need to continue to raise interest rates in the near future. According to Tomšík it is evident that the rates should increase, the question being when and by how much.

US business balance in September ended in deficit of 57 billion USD, which is a better result than the expected -59 billion USD. There were fewer applicants for employment benefits, 308 thousand, which help the good impression given by the job market.


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