INSTANT VIEW 3-Czech Oct industry output growth beats fcast

    Czech industrial output rose by a 
quicker than expected 12.8 percent year-on-year rate in October, 
after downwardly revised 5.5 percent growth in the prior month, 
data released on Tuesday showed. 
 
KEY POINTS: 
(brackets denote previously reported data) 
(y/y change in pct)      Oct      Sept             Oct forecast 
 Industrial output      12.8      5.5 (5.8)        11.0 
 Industrial sales       13.7      5.8 (6.1)         n/a 
 
 (Full table of data............................[ID:nPRA001078]) 
 
- Seasonally adjusted output rises 1.2 percent month-on-month. 
- Adjusted for the number of working days, output up 8.7 
percent, on an annual basis. 
- The statistics bureau says rise in year-on-year growth due 
mainly to a 21.4 percent jump in the production of electrical 
and optical equipment, which contributed 3.2 percentage points 
to the overall growth. 
- Vehicle production accelerates to post 17.1 percent annual 
growth, after a 10.3 percent jump a month earlier. 
- Direct exports sales up 16.0 percent in real terms. 
  
COMMENTARY: 
    JAN VEJMELEK, HEAD OF ECONOMIC STRATEGY AND RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "Despite the fact this number was significantly positively 
affected by two extra working days, the dynamic remains 
relatively high even after an adjustment. The outlook remains 
relatively optimistic, which is shown in statistics on orders. 
    "The growing European economy so far outweighs the negative 
influence of the strong crown." 
     
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "Today's result is above average and shows that Czech 
exporters can handle the firming crown. New orders (up 19.6 
percent) are excellent news as well. 
    "This year, industrial output growth will be 10 percent, the 
highest in history. Then we will have to wait for a similar 
result until 2009, when the new Hyundai factory comes fully on 
line." 
     
MARKET REACTION: 
    Crown currency trades at 27.91 to the euro  from 
27.935 ahead of the data, near all-time highs at 27.82 seen 
earlier this month. 
  
BACKGROUND: 
- Oct foreign trade figures......................[ID:nL06178576] 
- Report on last Czech c.bank rate decision.......[ID:nL3091748] 
                                 [ID:nPRA001058] [ID:nPRA001059] 
 
LINKS: 
- For further details on October 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] 
- 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                       
 
 ((Writing by Jan Lopatka; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: CZECH ECONOMY/INDUSTRY  
    

[PRAGUE/Reuters/Finance.cz]