INSTANT VIEW 2-Czech Feb industry output surges, beats fcast

...sustained a robust pace of expansion into 
2007, data showed on Wednesday. 
 
KEY POINTS: 
(brackets denote previously reported data) 
(y/y change in pct)      Feb      Jan              Feb forecast 
 Industrial output      15.4    10.7 (9.8)          8.4 
 Industrial sales       16.8    11.9(11.0)          n/a 
 
 (Full table of data............................[ID:nPRA001244]) 
 (February construction output data.............[ID:nL11614216]) 
 
- Statistics bureau says the sector's growth is driven by strong 
foreign demand. 
- Seasonally-adjusted output rises 1.9 percent month-on-month. 
- Adjusted for seasonal factors, output increases 13.6 percent 
year-on-year. 
- Production of electrical and optical equipment jumps 41.2 
percent to add 4.6 percentage points to the overall growth. 
- Vehicle production up 16.4 percent, which contributed 3.6 
percentage points to the headline industrial output growth. 
- On the other hand, electricity, gas and water production and 
distribution falls 4.3 percent, subtracting 0.4 percentage 
points from the overall growth figure. 
- Direct exports sales, accounting for slightly more than half 
of sales in the entire industrial sector, up 24.2 percent in 
real terms, accelerating from a 18.8 percent rise a month ago. 
 
COMMENTARY: 
    JAN VEJMELEK, HEAD OF ECONOMICS AND STRATEGY RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "The already published data on dynamics of Czech exports and 
industrial output statistics of our biggest trade partners such 
as Germany and Slovakia had signalled that Czech industrial 
output will show a high growth pace. 
    "The structure is favourable for future economic growth -- 
high dynamics are being recorded by production for long-term 
consumption and investments." 
     
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "The industrial output numbers clearly showed why 
unemployment has been falling. 
    "Strong demand from Germany helped. 
    "Warm weather gave a kick as well to the construction sector 
where output grew by one-third. 
    "In the next five, six years, growth in Czech industrial 
output may be around 7 percent a year. 
 
MARKET REACTION: 
- Crown flat at 27.925 per euro  by 0714 GMT. 
 
BACKGROUND: 
- Feb foreign trade figures................ ......[ID:nL0424065] 
- Report on last Czech c.bank rate decision      [ID:nPRA001222] 
                                 [ID:nL06735130] [ID:nL29598110] 
 
LINKS: 
- For further details on February output and sales numbers and 
past data, Reuters 3000 Xtra users can click on the Czech 
Statistical Bureau's Website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-pru 
 
- For LIVE Czech economic data releases, click on        
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- Czech money guide                                       
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- Czech forward money market rates                       
 
  
  Keywords: CZECH ECONOMY/INDUSTRY