INSTANT VIEW 2-Czech May industry output slows

...of a double-digit rise. 
 
KEY POINTS: 
(brackets denote previously reported data) 
(y/y change in pct)       May      April  May forecast 
 Industrial output        7.5     14.0      11.0 
 Industrial sales         8.6     14.4       n/a 
 Construction output      1.4     17.6       n/a 
 
 (Full table of data............................[ID:nPRA001394]) 
 
    NOTE. Analysts polled by Reuters had given a median output 
growth forecast of 11.0 percent for May  . 
 
- Industrial growth rate drops after four months of double digit 
expansion.  
- Seasonally-adjusted output rises 0.1 percent month-on-month. 
- Direct exports sales, accounting for slightly more than half 
of sales in the entire industrial sector, up 12 percent in real 
terms, slowing from 22.0 percent rise a month ago. 
- Output dropped year-on-year in the sectors of metallurgy, 
coking, oil refining and energy resources mining. 
 
COMMENTARY 
    PETR DUFEK, ANALYST, CSOB, PRAGUE: 
    "The slowdown is no surprise, we had expected the 
double-digit growth would end for a while. It does not mean the 
trend is turning toward a worse one or that something 
extraordinary is happening. This is marginal news for the 
markets and will be forgotten soon. The current account data due 
out at 0800 GMT will be much more interesting." 
     
MAKET REACTION 
    The crown is marginally weaker after the data at 28.255 to 
the euro  from 28.24 ahead of the news, following 
strong gains throughout this week. 
  
BACKGROUND: 
- May foreign trade figures......................[ID:nL09337680] 
- Report on last Czech c.bank rate decision      [ID:nPRG000403] 
                                 [ID:nL28398864] [ID:nL10222777] 
LINKS: 
- For further details on May 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        
- Instant Views on other Czech data                 [CZ/INSTANT] 
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- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
  
  Keywords: CZECH ECONOMY/INDUSTRY