Industrial production increased by 5.8% y/y in September. The focus of this industry growth remains the production of machinery, vehicles, electrical and optical appliances. Food industry results were disappointing. In order to keep its competitive advantage and to further spur industrial growth, it is important for the Czech Republic to see a moderate decrease in unit labor costs. This is even more obvious when looking at the slow down in the growth of new contracts. We expect to see a 10% increase in industrial production for the full year.