INSTANT VIEW 3-Czech Aug trade gap biggest in year-to-date

    PRAGUE, Oct 6 (Reuters) - The Czech foreign trade balance 
slipped to the biggest monthly deficit so far this year in 
August, showing a 2.1 billion crown ($94.68 million) shortfall, 
almost exactly matching market expectations. 
 
KEY POINTS: 
(in bln CZK)           Aug        July           Aug fcast 
 balance              -2.07      -1.22          -2.3 
(nominal y/y change in pct) 
 exports               8.9       14.4            n/a 
 imports               7.1       14.8            n/a 
 
 (For full table of trade data, click on........[ID:nPRA000960]) 
 
- According to seasonally-adjusted preliminary data, exports 
drop 1.4 percent percent in August from July while imports rise 
4.5 percent month-on-month. 
- The headline trade balance deficit narrows by 2.4 billion 
crowns over the same month a year ago. But the statistics bureau 
points out that the August 2005 balance reflected a one-off 
import of Jas-Gripen fighter jets worth 5.9 billion crowns. 
- In euro terms, exports rise by 14.3 percent and imports by 
12.4 percent year-on-year in August, outpacing the growth rates 
in local currency terms because of a firming in the crown. 
 
COMMENTARY: 
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "The trade result is favourable, marking an improvement 
compared with the same month a year ago despite high commodity 
prices which are inflating imports. The good result is mainly 
due to the industrial sector, particularly car production. 
    "For the market, the result is a favourable sign confirming 
the positive trend in the economy." 
     
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "Export markets were quiet during the holiday period when 
many companies have plant holiday shutdowns. 
    "The trade balance for August has never been positive, so 
(this year's result) is not tragic. We are looking for a better 
result next month. Business will return to normal and there will 
be a favourable impact of the 22 percent drop in crude oil 
prices over the past two months. 
    "For the whole of this year, I expect a record high trade 
surplus, a touch above last year's 39 billion crowns." 
 
MARKET REACTION: 
- Crown stagnating near 6-week highs, trading at 28.130 per euro 
<EURCZK=> by 0718 GMT. 
 
BACKGROUND: 
- Market expectations before release             [ID:nL03199349] 
- Slovak July trade figures                      [ID:nL11388867] 
- Polish trade in July                           [ID:nL12785297] 
- Hungary's July trade data                      [ID:nL08073722] 
- Report on last Czech c.bank rate decision      [ID:nL27342627] 
                                                 [ID:nL27365976] 
 
- 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       <ECONCZ> 
- 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                <CZKVIEW> 
- Czech money guide                                      <CZK/1> 
- Czech benchmark state bond prices                   <0#CZBMK=> 
- Czech forward money market rates                      <CZKFRA> 
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
 ($1=22.18 Czech Crown) 
  Keywords: ECONOMY CZECH TRADE