Industrial output took a hard hit from falling demand abroad. Export sales dropped by 26.9% y/y in January. It is not surprising that car assembly and production of basic metals contributed most to the slump. An outlook for months to come remains bleak as index of new orders fell by 26.4% y/y. Gloomy figures and forecasts leave open possibility for further rate cuts, however, CZK volatility is likely to deter the central bank from doing it now.
Actual (January): -23.3% y/y
Consensus: -18.0% y/y
Previous (December): -12.8% y/y