Czech Republic May Post Trade Surplus in July

The Czech Republic probably had a seventh consecutive trade surplus in July, the longest run since the country's creation in 1993, as companies cut short summer closures and boosted exports to the European Union, a survey of economists showed.

The surplus will probably be 500 million koruna ($21 million) compared with 7.5 billion in June, according to the median estimate of 11 economists surveyed by Bloomberg Aug. 26-30. A surplus would be the country's first in the month of July, when factories typically close for as long as three weeks.

The Czech Republic may post a surplus for the year after trade barriers were scrapped when the nation joined the EU in May 2004. That enabled exporters such as the Czech unit of Dutch paper producer Kappa Packaging NV and carmakers to tap growing demand in Western Europe. Exports may rise further as seasonal shutdowns end, economists said.

The statistics office will publish the report at 9 a.m. in Prague.

Industrial orders from abroad jumped 20 percent in June from May and were up 21 percent from June 2004. Growth in the euro region will accelerate to 0.6 percent in the fourth quarter after 0.4 percent expansion in the third quarter and 0.3 percent in the second, the European Commission said Aug. 11.