The Czech industry and construction were declining year on year. Under scrutiny, better tomorrows are shimmering, also the construction of apartments is taking off.
In the context of frequent reports on the crisis in industry, the current data from the Czech Statistical Office (ČSÚ) does not sound that bad. Although from a macroeconomic perspective industry and construction are in negative numbers, looking into the future does not foreshadow an impending disaster. Positive data mainly concerned apartment buildings, where there should be significantly above-average construction. On the other hand, family houses are on the decline.
New data regarding the industry confirm trends that the media often mentions. Last year, several major companies focused on car production limited their production. Whether it was the German Volkswagen, the French-Italian Stellantis or the European branch of Ford. The current geopolitical tensions do not fundamentally benefit export-oriented car manufacturers.
The production of cars and their parts is a key part of the Czech industry, much like in other European countries. And even the Czech automotive industry did not report overly positive numbers last year.
A decline in automotive pulled the entire segment into negative numbers.
"The year-on-year decline in industrial production in December was mainly influenced by the production of motor vehicles. The influence of a high comparison base from the previous year was particularly evident here. The production of electrical equipment also declined, especially components for the automotive industry,"
Radek Matějka, Director of Agriculture and Forestry, Industry, Construction and Energy Statistics Department of the Czech Statistical Office (CSO), highlighted problems in the automotive industry.
In terms of numbers, the production segment of motor vehicles, trailers and semi-trailers decreased by 2.3%. The worst situation, however, is reported by the heavy industry of basic metal production, metallurgy and foundry. While the automotive industry announced an increase in the value of orders by 1.79%, the metallurgical and foundry segment expects a drop of 11.5% in this respect as well.
At first glance, the overall view of the industrial production index, which is used for European comparison, does not inspire optimism either. The Czech Republic reached a value of -1.2 points in 2024, but only 8 countries in this index achieved positive values (Denmark was the best with 8.3 points), still Czech industry remained above the EU average with a value of -2.5. Neighboring Germany, as a key partner for Czech companies, took the penultimate position in the index with -4.8 points.
In construction, the commencement of above-standard construction in residential buildings was observed, otherwise the segment was falling
However, Czech exports were successful. According to current data, the balance of foreign trade in goods at current prices ended in December with a surplus of 6.8 billion CZK, which was 2.2 billion CZK higher year-on-year.
"In December, commodity exports rose by 28.3 billion CZK year-on-year. The largest share in this result was the export of computers and electronic and optical devices, which increased by 7.4 billion CZK year-on-year. The same group of products had the greatest impact on the year-on-year increase in imports,"
said Jana Mazánková, head of the trade balance department at the Czech Statistical Office.
The view of statisticians did not bring too many positive data even in construction. In a comparable index, the segment showed an even worse position of the Czech Republic than in the industry. The CR reached a value of -4.3 points, while the European average of the index is 1.7 points.
"Construction production in 2024 decreased year-on-year by 2.4%, due to the drop in ground constructions. Engineering construction remained at the level of the previous year. The guidance value of construction permits issued last year fell slightly, but new construction due to the construction of apartment buildings recorded annual growth. Housing construction in the completion phase was then in decline in all categories,"
explained Petra Cuřínová, head of the construction and housing construction statistics department of the CZSO.
However, one positive piece of data was found in the construction statistics. In 2024, the number of started apartment constructions increased by 2.2%, which indeed meant a decrease in the construction of family houses by 10.2%, but at the same time a rather significant increase in the construction of apartment buildings by 24.9%.
Sources: author's article, CZSO, Economic Diary
