Slovak industrial output beats forecasts in Sept

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Slovak industrial output accelerated faster than expected in September as automotive and electronics sectors picked up speed, data showed on Thursday, and analysts saw solid growth in the coming months.

The Slovak Statistics Office said industrial output rose by a real 15.4 percent year-on-year in September, after a revised increase of 5.8 percent in August. Analysts had forecast a 11.1 percent annual rise

Manufacturing, which has the strongest weighting in the output index, was up 17.5 percent on the year, after a 8.1 percent growth in August.

"Industrial production picked up after the holiday season at the largest exporters ended, and this is mainly seen in figures for transportation vehicles, which accelerated again," said Silvia Cechovicova, an analyst with CSOB Bank in Bratislava.

Production in the automotive industry, which is centred around assembly plants of Volkswagen , PSA Peugeot Citroen and Kia Motors , rose by 52.2 percent from a year ago, after 12.5 percent growth in August.

August data were influenced by summer holidays at the three car plants.

Analysts said September production of electrical and optical equipment were a positive surprise.

"However, next month data will have to show whether this is a real permanent level shift or whether the seasonal acceleration, which typically takes place in October, moved one month forward," said Lucia Sramkova, the senior analyst with ING Bank in Bratislava.

Market watchers said they expected industrial output to maintain double digit growth in the coming months.

They also said better-than-expected production growth was also likely to have a positive impact on September trade data, which are due out on Friday.

A Reuters poll forecast a trade gap of 3.5 billion crowns, but Sramkova said a balanced trade figure was possible after strong industrial output reading.

(For table with industrial output details, please click on [ID:nL0862120]) (Writing by Martin Santa and Peter Laca, editing by Mike Peacock)

Keywords: SLOVAKIA ECONOMY/OUTPUT

[BRATISLAVA/Reuters/Finance.cz]