Brno - In May 2011, Czech industrial production sharply accelerated, growing 15.2 percent. In April, the growth rate was only 4.7 percent.
The Czech Republic owes this to the stable economic growth in Germany and other eurozone countries.
The May manufacture growth data significantly beat even the most optimistic estimates of analysts who now speak of "shocking growth" and "striking surprise".
"The growth rate surpassed even the most optimistic estimates. It is a positive surprise, on which the financial market could react by slightly increasing the expectation of the growth of interest rates and the Czech crown could get a little stronger as well," said Michal Brožka, an analyst for Raiffeisenbank.
However, economic data also shows that so quick growth will not be permanent. "The following months will show whether it is a one-time divergence that will be cooled by weaker data next month. The development of leading indicators rather points on a deceleration of the industry rather than on an acceleration," said Brožka.
The growth of the Czech industrial production is yet again based on the car industry, while production of computers decreased in May.
The data show that the number of employees in companies is increasing. In May, the average number of employees in industry firms with more than 50 employees grew by 3.7 percent on a year-to-year basis. The average monthly salary of these employees grew by 6 percent, to CZK 26,570 (EUR 1,100).