Slovak industrial output picks up in August

    BRATISLAVA, Oct 9 (Reuters) - Slovak industrial output rose 
accelerated sharply in August, driven by a surge in car 
production with analysts expecting the positive trend to 
continue as further car capacity goes on-line. 
    Industrial output rose by a real 13.7 percent year-on-year 
in August, up from 8.3 percent growth in July, the Slovak 
Statistics Office said on Monday. 
    August output outperformed analysts' predictions for a 9.5 
percent rise, with economists saying a low base effect from the 
last year also provided a positive contribution. 
    "The production launch of the PSA Peugeot Citroen plant and 
the further influence of the Volkswagen plant help explain this 
(the growth)," said CSOB bank analyst Silvia Cechovicova. 
    Cechovicova expected the strong rise in the car production 
to continue in the coming months, with South Korea's Kia Motors 
<000270.KS> Slovak unit to begin rolling out cars by the end of 
the year. 
    Slovakia is expected to become the world's largest car 
manufacturer per capita once plants of French PSA Peugeot 
Citroen <PEUP.PA> and South Korean Kia Motors reach full output 
and join Volkswagen's <VOWG.DE> Slovak plant, which had a brief 
shutdown during the summer. 
    "The resumption of production at the local Volkswagen branch 
and the launch of production as PSA was expected to 
significantly boost production and exports in Slovak economy in 
the second half of the year," said Slovenska Sporitelna analyst 
Maria Valachyova. 
    Swings in car production can significantly influence the 
country's overall economic performance. 
    Slovak PSA unit's production capacity reached 6700 cars in 
August, with 60,000 units expected to be manufactured by the end 
of the year, Slovakia's PSA spokesman Peter Svec said. 
    Slovakia's Volkswagen spokeswoman Silvia Nosalova told 
Reuters the plant was running full shifts, adding the only 
slow-down seen ahead was the regular Christmas holiday. 
    "This will have a positive effect on the foreign trade 
balance," Cechovicova added. 
    The Statistics Office will release August foreign trade data 
date on Thursday, with analysts predicting a gap of 2.4 billion 
crown, compared to 7.3 billion crown gap reported in July. 
 ((Reporting by Martin Santa in Bratislava, Editing by Chris 
Pizzey; Email:martin.santa@reuters.com; RM: 
martin.santa.reuters.com@reuters.net; +421 2 5341 8402)) 
  Keywords: ECONOMY SLOVAKIA OUTPUT