Romania's industrial activity shows fragile signs of recovery

Romania's seasonal and workday-adjusted industrial output increased for the second month in a row in April (+2.3% m/m), reaching the highest level in the past 12 months after having demonstrated a fragile (+1.4% per annum) and not particularly statistically relevant trend across the past year, according to data published by the statistics office. This is the first positive sign since the war in Ukraine halted the post-COVID industrial recovery. Ironically, one of the recovery drivers is Europe's Readiness 2030 scheme (formerly ReArm Europe) and defense spending across the continent.

The adjusted industrial output in the core manufacturing sector advanced by 2.9% month-over-month in April, consistent with a similar fragile upward trend over the past 12 months (1.9% per annum).