Lower car production hits Czech industry output

Graeme Roberts November 9, 2021 (Last Updated November 9th, 2021 16:44)

Reduced car production slowed Czech output overall.

Lower car production hits Czech industry output

Falling Czech car production in September reduced industrial output at the end of the third quarter amid plant shutdowns due to the global chip shortage, Reuters reported, citing the statistics office.

The report said output fell for a second consecutive month and drove the trend of lower output in central European economies heavily reliant on the car sector. Hungary had earlier reported its first year on year industrial output decline since January.

“September results reflect especially the reduction of production of cars and their parts,” Radek Matejka of the statistics office told Reuters.

Car production dropped by a third in September, according to data cited by the news agency.

Toyota and Skoda both halted production in September due to a shortage of chips, Reuters noted.

“It is still valid that complications in supplies of materials and necessary components can lead to fluctuations in production in the coming months and slow overall growth, especially in car manufacturers and related industries,” Radomir Jac, chief economist at Generali Investments CEE, told Reuters.