INSTANT VIEW 2-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." 
 
MARKET REACTION: 
- Crown flat at 28.130 per euro <EURCZK=> by 0710 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