Industrial output surprised significantly to the upside in September. The strong result was driven primarily by a rebound in automotive production following the summer shutdowns and higher energy output. New industrial orders also sent a positive signal, rising by 8% yoy, mainly on the back of stronger foreign demand. In our view, these developments confirm the ongoing cyclical recovery in Czech industry. However, higher energy prices, supply chain issues and tighter financial conditions may limit the pace of the recovery. The foreign trade balance recorded a surplus of CZK23.7bn in September, although this was lower than a year earlier. Construction output remained flat mom and rose by 1.6% yoy, with stronger civil engineering offsetting a decline in building construction.