The Czech manufacturing sector experienced a 2.2% year-on-year growth in March 2023, primarily buoyed by the country's thriving car industry. The key factor driving this expansion was a significant increase of 42% year-on-year in auto manufacturing, as detailed in the Czech Statistical Office's latest report.

Despite the surge in auto production, new order values witnessed a 1.7% drop in comparison to the same period last year. This dip was largely due to a 5.0% decline in international orders, although this was somewhat mitigated by a 5.6% rise in domestic orders. The report also highlighted a slight contraction of 1.3% in the average industry workforce. However, there was a notable increase in their mean gross monthly earnings, which grew by 9.3%.

In contrast to the Czech growth, the broader EU27 saw a slightly lesser industrial expansion of 2.1% according to Eurostat figures, and the Czech Republic itself reported a 2.0% growth in February 2023.