Industrial activity gains momentum in Romania after April drop

Romania's industrial production, seasonally and workday adjusted, rose by 15.1% in May compared to April, partly recovering after the deep 27.9% monthly dive in April.

The recovery in May was stronger in the core manufacturing sector: +20.6% month-on-month, after the 32.3% decline in April. It is important to note that the industrial activity in Romania was losing ground even before the coronavirus pandemic.

In February, before the coronavirus outbreak, Romania's industrial output was 2.4% lower year-on-year (-1.9% year-on-year in manufacturing). Compared to February, the last month before the coronavirus crisis hit the economy, Romania's industrial activity in May was still 27.3% lower (-30.6% in the manufacturing sector), showing an incomplete recovery.

In the automobile industry, the production in May was still less than half (-57.1%) compared to February, after the deep 81% decline (also against February) seen in April. Before the crisis, in February, automobile production was down 1.1% year-on-year.

Still, some industries have performed above average during the crisis and continue to enjoy a robust outlook.

For instance, the food industry was less hit by the crisis, and its output in May was only 10.1% lower compared to February, roughly at the same level as in April. The food industry was on a volatile upward trend before the crisis (+3.4% year-on-year in February).

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