INSTANT VIEW 3-Czech Aug industry output growth lags fcasts

    PRAGUE, Oct 12 (Reuters) - Czech industrial output rose by a 
slower than expected 7.4 percent year-on-year rate in August, 
after upwardly revised 12.2 percent growth in the prior month, 
data released on Thursday showed. 
 
KEY POINTS: 
(brackets denote previously reported data) 
(y/y change in pct)     Aug       July             Aug forecast 
 Industrial output       7.4      12.2 (11.8)       10.2 
 Industrial sales        6.9      12.4 (12.2)        n/a 
 
 (Full table of data............................[ID:nPRA000973]) 
 
- Seasonally adjusted output falls 1.1 percent month-on-month. 
- The statistics bureau says slowdown in year-on-year growth due 
partly to companies in some industries shifting holiday 
shutdowns to August from July. 
- Car production slows to post 6 percent annual growth, after a 
33.4 percent jump a month earlier. 
- Production in the electrical and optical industry was biggest 
contributor to output growth, rising 13.5 percent. 
- Direct exports sales up 8.3 percent in real terms after a 13.7 
percent rise in July. 
 
COMMENTARY: 
    JAN VEJMELEK, HEAD OF ECONOMICS AND STRATEGY RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "The August result was a disappointment. This was only the 
second month this year when there was a one-digit growth figure. 
But it is too early to conclude that the trend has began turning 
towards a slowdown in industrial production growth ... The 
dynamics of new orders remain in double digit figures. Financial 
markets should not react to the data." 
     
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "Lower industry growth in August does not surprise us. 
Holidays, high base from the past year and a gradual subsiding 
of the effect of new capacities all combined to cause a slowdown 
in the pace of the most important Czech sector. 
    "For the market, this is not a very favourable news, as it 
was gunning for a double-digit number, but the crown should not 
really be concerned about this one figure. The view of the 
economy does not change, the underlying trends remain intact. 
Markets will be watching the developments across the region." 
 
MARKET REACTION: 
- Crown a tad firmer at 28.235 to the euro <EURCZK=>. 
 
BACKGROUND: 
- Aug foreign trade figures......................[ID:nL06159828] 
- Report on last Czech c.bank rate decision      [ID:nL27342627] 
                                 [ID:nL27365976] [ID:nPRA000961] 
 
LINKS: 
- For further details on August 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       <ECONCZ> 
- 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                <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 Cheryl Juckes; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: ECONOMY CZECH INDUSTRY