Czech manufacturing cycle likely peaking

Czech Republic's October industrial output data was a robust 6.4%yoy (wda), which came above the consensus expectations. The month-on-month growth rate of Czech industrial output, however, is fading. 

Last three months output was roughly steady when compared to the preceding three months. 

"We anticipate that H2 2015 will prove to be a major peak in manufacturing activity, driven by EU-funded project activity and still strong car production", says Commerzbank in a research note. 

There are various reasons to fall in an impression that the growth momentum has reached peaks and the manufacturing growth will drop down in coming quarters, as on off boosts dissipate, therefore the GDP growth is likely to slow down.