Business News Industrial output growth slows down in June

The Czech Republic's industrial output grew by 1.3 percent year-on-year in June as compared to 5.1 percent in the previous month. Employment in industry fell by 35,000 and the slump was the worst since May 2000. Economic analysts see the main reasons behind the drop in unfavourable economic situation in the EU and the appreciation of the Czech crown. The two factors make industrial firms lay off workers and freeze wages. No significant improvement can be expected in the months to come and industry is predicted to grow by less than 5 percent this year, down from last year's 6.8 percent. According to experts, next year could see a modest acceleration of industrial output growth provided EU economic revival is in line with expectations.