INSTANT VIEW 2-Czech Aug trade balance stays in red, lags fcast

...versus a 1.1 
billion deficit in August 2006. 
************************************************************** 
KEY POINTS: 
(in bln CZK)           Aug        July         Aug fcast 
 balance              -0.59       -0.73         1.1 
(nominal y/y change in pct) 
 exports              12.1        20.7          n/a 
 imports              11.7        18.7          n/a 
 
 (For full table of trade data, click on........[nPRA001536]) 
 
- Export growth is weakest since September 2006, while the rise 
in imports is the slowest since May 2007. 
- According to seasonally-adjusted preliminary data, exports 
fell 5.0 percent in August from July while imports dropped 1.2 
percent percent month-on-month. 
- The trade balance improved year-on-year thanks to better 
results in trade with raw materials, mineral fuels and 
foodstuffs and livestock. 
- The surplus in machinery and transport equipment, mainly cars, 
shrank by 1.4 billion crowns year-on-year. 
- In euro terms, exports rose 13.4 percent and imports by 13.0 
percent year-on-year in August, outpacing the rise in local 
currency terms because of a strengthening in the crown. 
 
COMMENTARY: 
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "This is a slight disappointment, we had expected a surplus 
of 1.5 billion (crowns). However, a deficit in August is simply 
something we are used to...There is no change in the trend and 
foreign trade remains in good condition. 
    "I expect better results in the coming months." 
     
    MARKET REACTION: 
- Crown flat at 27.545 versus the euro  by 0708 GMT. 
Money market rates and debt yields show no visible reaction. 
     
BACKGROUND: 
- Market expectations before release              [ID:nL0256263] 
- Slovak July trade figures                       [ID:nL11562391 
- Polish trade in July                           [ID:nWAR006055] 
- Report on last Czech c.bank rate decision      [ID:nL27772602] 
  [ID:nPRA001517] [ID:nPRA001518] [ID:nPRA001533] [ID:n05533999] 
 
- For further details on August foreign trade and other past 
data, Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-vzo 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data click on        [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 

[PRAGUE/Reuters/Finance.cz]