Industrial production in the Czech Republic fell by 1.4% in 2024 compared to the previous year, while the value of incoming orders rose by 2.8%. Nevertheless, Czech industry as a whole performed better than the EU average. The construction industry saw a decline of 2.4% compared to the previous year, according to the latest data from the Czech Statistical Office (ČSÚ).
“Industrial production fell by 1.4% in 2024 compared to the previous year, primarily due to lower demand for products in mechanical and plant engineering, as well as reduced production in metal manufacturing, processing, and machining. Both production and the value of incoming orders declined in these two sectors,” explains Veronika Doležalová, Head of the Industrial Statistics Department at the Czech Statistical Office (ČSÚ).
Industrial production fell by 1.4% compared to the previous year (compared to 2019: -1.1%, 2021: -0.5%). Production in the motor vehicle, trailer, and semi-trailer sectors particularly saw a decline. However, the value of incoming orders rose compared to the previous year, at current prices. The manufacture of data processing equipment, electronic and optical devices, and other vehicle construction also saw an increase in incoming orders.
Overall, Czech industry outperformed the EU average, where industrial production fell by 2.5% year-on-year in the first eleven months of last year. The decline in the Czech Republic was about half as large in the same period. In Germany, production fell by nearly 5% during the same period compared to the previous year.
In contrast, the Czech construction industry was below the EU27 average in 2024, similar to Germany, Poland, and Slovakia. Construction output declined by 2.4% compared to the previous year, mainly due to a drop in building construction. Civil engineering remained at the same level as the previous year. The number of building permits issued fell slightly, while the completion of residential buildings stagnated across all categories. The value of new construction contracts reached CZK 387 billion, an increase of 16% compared to the previous year. Moderate growth is expected in the near future.
