Industrial activity in Romania stagnates and might deteriorate soon - poll

The industrial production in Romania did not recover in July after the sharp fall in June, and the main cause of stagnation is the insufficient rate of orders, according to the monthly industrial barometer compiled by IRSOP polling agency and the Faculty of Management of SNSPA University and published on August 29.

“The overall indicator of managers 'confidence [expectations about production] has dropped to 52 points, compared to 70 in January. The decrease over the last 6 months has been linear and continuous. The likelihood of managers' confidence falling in the “negative territory” (below 50 points) in the coming months has increased,” according to the authors of the study.

The industrial production dynamics indicator stagnated at 52 of 100 points in July (same level as in June), close to the 50-point level that indicates economic standstill, while stocks indicator also stagnated at 46 points.

The indicator for new orders are close to standstill as well: 51 points compared to 53 in June, the one for exports did not recover from contraction that pushed it down to 46 points in June, while the indicator for imports of raw materials stagnated at the same level as in June, namely 52 points.

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