The Czech Statistical Office (CZSO) has released a report indicating that service revenues in the Czech Republic experienced a 3.5% decline during the second quarter of 2021 when compared to the same period the previous year. This drop was primarily attributed to reduced revenues in the transportation and storage sectors, though there were increases in revenues within the accommodation, food, drink, and scientific and technical activities segments. This follows the weakening of services in the first quarter, where revised data revealed a decrease of 0.3% compared to the prior year.

Among the major service sectors, six experienced revenue declines during Q2, with the most notable being transportation and storage, which saw revenues plummet by 11.3%. This sector bore the brunt of a 16% drop in storage and related activities, a 9.7% reduction in land and pipeline transport, and a 3.4% decrease in postal and courier activities. Conversely, air transport witnessed a revenue increase of 10.3%.

Information and communication activities faced a revenue decline of 1.6%, primarily driven by a substantial 12% drop in the film and music industry, as well as a 5.7% reduction in publishing activities. Real estate activities also reported a 2% decline in revenues year on year.

Within administrative and support activities, revenues fell by 0.8%, with employment agencies experiencing the most significant decrease at 13.3%. However, travel agencies, offices, and other booking-related activities saw an increase in revenues of 16.2%.

The only sectors to register growth were professional, scientific, and technical activities, up 2.9%, and accommodation, food, and drink, up 0.7%. Within accommodation, revenues increased by 7.5%, whereas food and drink encountered a 1.4% dip. Notably, legal and accounting activities within specialist services recorded the highest increase, with revenues growing by 9.4%.

Conversely, other professional, scientific, and technical activities, including services like mediation, translation, and photographic services, as well as building supervision, saw revenue decline by 1.6%.

When comparing Q2 to the previous quarter, revenues also fell by 1.2%, with the only growth reported in professional, scientific, and technical activities and administrative and support activities.

Article by Prague Forum