Despite production stoppages in the automotive sector and a significant fall in motor vehicle production, industrial output rose month-on-month in August. The situation was salvaged by the completion of a major rail vehicle manufacturing order, which ultimately led to growth in the sector. This offset a considerable decline in energy production. Overall, we remain cautiously positive about the future development of Czech industry. However, output in the coming months may be affected by supply chain issues or higher energy prices. Construction output struggled in August. This downward trend is primarily linked to civil engineering. This may be due to the effects of the government changeover or the exhaustion of certain EU funding sources. Higher oil prices and production stoppages in the automotive industry were reflected in August's foreign trade deficit.