Industrial output growth slows down to 9.7% y/y in September.

Industrial output growth slows down to 9.7% y/y in September. The growth of the industrial production decelerated to 9.7% y/y in September, down from 14.3% y/y for the previous month, the Statistical Office reported. The manufacturing industry was mainly responsible for the slower growth as its output expansion rate dropped to 12.6% y/y. All important branches showed a weaker performance, led by the transport equipment sector. It exhibited a still robust production growth of 26.2% y/y for the month, driven by the gradual acceleration of production at the PSA car plant in Trnava while the slowdown was probably due to the operations of the VW car plant in Bratislava . Recently, the plant confirmed that the new Audi Q7 car models, produced by the facility, were found to have been installed with faulty engines and would be recalled, which might be a potential reason for the production drop. The other key industrial branches – metal processing, machinery, electrical engineering and textiles, also recorded some growth slowdown, which might be related to the appreciation of the crown exchange rate as the majority of their production is directed for export. The output of the utilities sector was down by 8.8% y/y in September and the mining sector production also dropped by 7.2% y/y for the month. The construction output posted a 11.4% y/y growth in September against year-high 21.6% y/y for August. Domestic construction services showed a more modest performance while the construction work abroad extended its downward trend, falling by 5.8% y/y for the month.