(Reuters) – The statistics office reported Monday that the fall in Czech car production in September was due to plant closures due the the global shortage of chips.

In central European countries heavily dependent upon the automotive sector, output fell again for the second month in a row. Hungary posted Friday its first annual decline in industrial output since January.

Czech production fell by 4.0% and 3.3% respectively year-on–year.

According to statistics, industrial production growth in the third quarter was 0.2%.

Radek Matejka, a statistician from the office said that September results show a reduction in production of automobiles and parts. “However, that doesn’t alter the fact that many other (economic activities) in manufacturing continue to be rather successful and their production is on the rise.”

According to data, car production fell by one-third in September.

Both Skoda Automotive and Volkswagen (DE) were affected by production stops in this month because of a lack of chips.

After a growth rate of 8.1% during the preceding quarter, the Czech economy suffered a slowdown in its recovery in the third quarter. Preliminary data on October 29 showed that the country’s gross domestic product grew by 2.8% year-on-year.

Radomir Jac (MI:) Investments CEE chief economist, stated that “it is still valid” that supply issues can cause fluctuations in production and slow overall growth in certain industries, including car makers and other related businesses.