The Czech economy increased 2.6 percent y-o-y and 0.9 percent q-o-q in the second quarter, according to Czech Statistic Office (ČSÚ). Strong foreign demand and stable household consumption continued to be the main drivers. Gross added value (GAV) rose 2.7 percent y-o-y and 0.9 percent q-o-q. All sectors reported growth except construction, which was negatively affected by a decrease in investment activity. GAV fell 5.5 percent in construction, while it was up 4.8 percent in the consumer industry, which was driven mainly by an increase in automotive production. The service sector was on the rise as well, with GAV for trade, transport and hospitality up 2.5 percent and for real estate services by 2.1 percent. Foreign trade contributed 2.5 bps to GDP growth y-o-y, while household consumption added 0.8 bps. Employment increased by 1.6 percent y-o-y.
