Slovak ind output picks up in Oct, outlook bright

    BRATISLAVA, Dec 8 (Reuters) - Slovak industrial output 
accelerated in October thanks to a continuing production boost 
in auto manufacturing, and analysts said on Friday they expect 
the trend to continue in the coming months. 
    Industrial output rose by a real 11.1 percent year-on-year 
in October, accelerating from a revised 9.8 percent increase in 
September, Statistics Office data released on Friday showed. 
    The output growth was a touch below the market forecast of 
an 11.5 percent rise, but analysts said the data nonetheless 
confirmed the rising trend. 
    "A further acceleration (of industrial output) is expected 
due to the expected production boosts at PSA Peugeot Citroen's 
and KIA's plants," said ING bank analyst Eduard Hagara. 
    "It confirms what GDP growth data showed, that new 
production is starting and the economy's potential is rising," 
Hagara added. 
    The Slovak economy grew by a record 9.8 percent in the third 
quarter and analysts said investments, shown in inventories, and 
domestic demand were the key drivers. 
    Output in the strategic automotive industry, the backbone of 
Slovakia's economy, jumped by 41.1 percent on the year in 
October after a 26.2 rise in the previous month. 
    "This confirms that this category will be the driver, not 
just until the year-end, but also in the coming year," said CSOB 
bank analyst Silvia Cechovicova. 
    Slovakia is expected to become the world's largest car 
producer per capita once plants of French PSA Peugeot Citroen 
<PEUP.PA> and South Korean Kia Motors <000270.KS> reach full 
output and join Volkswagen's <VOWG.DE> Slovak plant. 
    The three factories should together will have an annual 
output of over 800,000 units in 2008 or 2009. 
 ((Reporting by Martin Santa; Editing by Chris Pizzey; 
bratislava.newsroom@reuters.com; 
Reuters Messaging: martin.santa.reuters.com@reuters.net; +421 2 
5341 8402)) 
  Keywords: SLOVAKIA ECONOMY/OUTPUT