Industrial Production in Czech Republic

The Industrial Production Index measures the volume of output of Czech industry (manufacturing, mining and energy supply). Published by the Czech Statistical Office (CZSO), it is one of the most closely watched cyclical indicators for its ability to anticipate the cycle.

It is expressed as an index against a base year (index 100), aggregating industrial branch sub-indices weighted by their share of value added. The data are usually calendar- and seasonally-adjusted and released as annual (YoY) and monthly (MoM) rates of change.

Industry carries a large weight in the Czech economy, deeply integrated into Germany's manufacturing supply chain (especially autos), making this a key cyclical gauge. The Czech Republic is outside the euro, so activity feeds into Czech National Bank (CNB) decisions.

It is subject to revisions: releasing one month's figure usually revises the previous one. It is volatile and highly sensitive to the number of working days and to one-off automotive factors.