Industrial output growth came at 6.7 y/y in July, slightly below the market consensus. After the June growth of 2.2 %, this figure looks solid; nevertheless the result was significantly influenced by the calendar. July had 3 more working days this year, which means only 0.6% growth after adjustments. It shows that the condition of the Czech industry is in fact getting worse. The industrial output reflects a slow-down of export, a negative impact of the crown and a decreasing demand in Western Europe, weighing on the textile industry, which again significantly slowed down. On the other hand, the industry is still supported by optical appliances, electronics and acceleration in the vehicles sector. July data are a further indication of the economy slow-down. Therefore, the data did not influence our expectations of another decrease of the CNB rates.