Slovak Dec industrial output slows, outlook bright

    Slovak industrial output 
growth slowed in December, data showed on Thursday, but the key 
car industry showed a record annual jump and analysts expected 
strong production growth throughout the year. 
    The Statistics Office said industrial output rose by a real 
8.9 percent in December, after an annual increase of 9.8 percent 
in the previous month. 
    Manufacturing production, which has the strongest weighting 
in the output index, was up 12.5 percent on the year, compared 
with 13.0 percent growth in November. 
    Car industry's output surged by 73.5 percent from a year 
ago, the sector's fastest rise ever, as new assembly plants of 
French PSA Peugeot Citroen  and South Korean Kia Motors 
 increased production. 
    "We expect strong industrial output growth to continue, 
supported by electrotechnical industry and car production," said 
Slovenska Sporitelna senior analyst Maria Valachyova. 
    "These numbers confirm a positive view on economic 
performance and a strong growth outlook." 
    The automotive industry is the backbone of the EU-member's 
economy, and swings in its activity influence the country's 
overall economic performance. Rising car production also signals 
an improvement in Slovakia's foreign trade balance. 
    "Auto production was better than expected, so it could be 
slightly positive for tomorrow's reading of the foreign trade 
balance," said Lucia Steklacova, senior analyst at ING Bank 
Bratislava. 
    "If it does not materialise, then it would only mean a 
postponement of exports to January, and a very good figure 
then," Steklacova said. 
    The Statistics Office will publish foreign trade data for 
December on Friday, with analyst expecting a deficit of 10 
billion Slovak crowns ($375.2 million). 
    Car industry exports are also expected to become a key 
driver of Slovakia's overall economic growth, which the central 
bank expects at a real 8.6 percent in 2007. 
  

[BRATISLAVA/Reuters/Finance.cz]