Czech trade balance for April disappoints

The Czech trade balance for April ended in a surplus of Kč 22.0 billion, up Kč 8.8 billion year-on-year (y/y) but below market expectations, according to preliminary data published by the Czech Statistical Office (ČSÚ) said Wednesday.

“According to preliminary data of ‘border statistics,’ seasonally adjusted exports fell by 0.7% and imports rose by 1.4% compared to March 2012. The development trend shows decreasing exports (-0.3%) and increasing imports (+0.2%),” the office said.

Year-on-year, exports and imports at current prices rose by 8.4% (Kč 19.2 billion) and 4.8% (Kč 10.4 billion), respectively.

Exports of entities seated in the Czech Republic increased by 8.6% (Kč 15.5 billion) and entities seated outside the Czech Republic grew by 7.4% (Kč 3.7 billion), respectively. Imports of entities seated in the Czech Republic went up by 3.2% (Kč 5.8 billion) and imports of entities seated outside the Czech Republic increased by 13.7% (Kč 4.6 billion).

Komerční banka analyst Jiří Škop said the surplus was below the bank’s and market expectations.

“Nominal exports decreased for the second month in a row, and the April result is confirmation of weakening foreign demand,” he said, noting year on year dynamics of German factory orders are in the red numbers (-3.8%), and registrations of new cars in the EMU are down almost 9.0% cumulatively since the beginning of this year.