Industrial production in April disappointed when it grew only 5.5% yoy despite having two more working days. Adjusted by calendar effects, it even declined 0.2%. The second quarter started well for construction. Mainly production in building construction is flourishing because of higher investment activity in the private sector as well as higher construction of residential buildings. The trade balance statistics printed above expectations, showing a surplus that was CZK 3bn higher than a year ago.

DLA Piper in Prague has collaborated with investors, businesses, researchers and the Czech government to launch a report on the start-up scene in the Czech Republic. The report is part of a wider project aiming to chart the development of the Czech Republic’s start-up industry.

Nominal wages picked up by 8.6% YoY on the back of double-digit public sector wage growth and solid private wage increase. One more reason, why the central bank might hike sooner than expected, ING Bank Czech Republic says.  Real wage growth accelerated from 4.7% in 4Q17 and 3.7% for the whole 2017 (after revision) to 6.6% in 1Q18. This is the fastest year-on-year dynamics of real wages since the turn of 2002/2003, i.e. over the past 15 years.

Are you in or out? This is the question being mulled by the Social Democrats, as they are the ones who have to decide whether to take part in a coalition government with the ANO movement but propped up in the background by the Communist Party. We also need to bear in mind that, for the first time since the Velvet Revolution in 1989, the Communists are very close to influencing Czech government policy, Grayling Czech Republic says in the May issue of their Political Digest.