Slovak industry beats forecast in May due to cars

...data showed on Monday, and pointed 
to sustained strong economic growth in the second quarter. 
    Industrial output rose by a real 17.4 percent year-on-year 
in May, after a revised 14.8 percent growth in April and 
compared with a market forecast of 13.8 percent. 
    "The biggest part of the difference from the forecast was 
due to the car sector," said Eduard Hagara, an analyst at ING 
Bank in Bratislava. 
    Output in the automotive industry, which is the backbone of 
Slovakia's economy, rose by 76.0 percent on the year in May, 
after a 68.3 percent jump in April. 
    The outlook for industry remains favourable and strong 
production will continue fuelling overall growth, analysts said. 
    "We will see (second quarter) GDP growth at least sustained 
at levels from the first quarter," said Tatra Bank analyst Juraj 
Valachy. 
    The Slovak economy rose by a real 9.0 percent, year-on-year, 
in the first three months of 2007, following 9.6 percent growth 
in the last quarter of 2006. 
    However, output in the central European country's main car 
factories is expected to slow in the summer holidays and affect 
overall industrial statistics. 
    "We can expect industrial production to moderate in the 
coming months as car manufacturers, the main driving factor, 
have already announced they will reduce their output over the 
summer due to the holiday period," said Piotr Matys, an analyst 
at 4Cast in London. 
    The three car assembly plants, owned by Germany's Volkswagen 
, South Korea's Kia Motors  and French PSA 
Peugeot Citroen , plan holidays for the end of July and 
the beginning of August. 
    (For full table please click on ..... [ID:nPRG000410]) 
  (Additional reporting by Martin Dokoupil)