Tuesday, 8 September 2026
Czech industrial production continued to expand in July 2026, supported by automotive manufacturing, energy and several technology-related industries, although weaker domestic demand and declining employment point to an uneven recovery.
Industrial output increased by 3.1% year-on-year, marking the eighteenth consecutive month of annual growth, according to the Czech Statistical Office. Compared with June, however, production declined by 1.1%.
Motor vehicle manufacturing and electricity, gas, steam and air-conditioning supply made the largest contributions to annual growth. Production also increased in electrical equipment, basic metals and computer, electronic and optical products. Chemicals, rubber and plastics recorded moderate declines, while mining remained under pressure.
“Industrial production in July increased again, year-on-year. A y-o-y growth was recorded by industry already for the eighteenth successive month,” said Radek Matějka, Director of the Agricultural and Forestry, Industrial, Construction, and Energy Statistics Department at the Czech Statistical Office.
New orders provided a stronger indication of external demand, rising 7.2% from July 2025. Orders from international customers increased by 15.7%, while domestic orders declined by 6.6%. Compared with the previous month, total new orders were 3.2% lower.
Automotive manufacturing, electrical equipment and computer, electronic and optical products generated much of the annual increase in orders. Other transport equipment moved in the opposite direction, partly because of a strong comparison period in 2025.
Employment continued to lag behind production. The average registered workforce across Czech industry was 1.0% smaller than a year earlier, indicating that higher output has not translated into broader industrial hiring.
The latest available European comparison also shows Czech manufacturing outperforming the wider market. In June, Czech industrial production was 3.8% higher year-on-year, compared with growth of 0.6% across the EU27. German industrial output declined by 0.5% over the same period.
For the Czech industrial and logistics property sector, continued production growth and particularly the increase in foreign orders provide a supportive economic backdrop for manufacturing, supplier and distribution operations. The sharp difference between international and domestic orders nevertheless shows that the current expansion remains heavily dependent on external demand.
With monthly production and orders both declining in July despite strong annual comparisons, the figures point to continued industrial resilience rather than an accelerating recovery.
Source: CSO
