Industrial output grew 3.7% in June, less than expected (Patria's forecast was 4.5%). The fastest growth was recorded in refineries where production jumped by more than 30%. Production of electrical and optical equipment grew by 13%, but the flagship of the Czech industry - transport equipment production - actually contracted by 0.5%. The deceleration of industrial production is well established, as the five-month average has been falling since its February peak of 9.9% to 6.6% in June. Sales in industry grew by 4.0% in June in real terms, closely following the production deceleration.
Industry sector increased its payroll by 0.7% y-to-y in June. Real wages grew by 0.7% y-to-y as well. Real productivity grew by 3.3%, in line with average growth in 2001.