Romania’s industry shows signs of recovery in May-July with 4.0% y/y advance

Romania’s industry showed signs of recovery with the combined May-July output rising 4.0% y/y and the past year’s performance showing an upward trend (+2.9% per year). But the recent improvement data is mixed, and the past year’s trend looks extremely fragile, according to data published by the statistics office INS.

The findings are consistent with Romania’s PMI index, which has gradually increased since December to near the 50-point benchmark, indicating balanced manufacturing activity in August.

In July alone, the industrial output rose by 2.6% y/y and by 3.4% y/y in the core manufacturing sector. It was the third consecutive month of positive annual growth rates.

For the entire three-month period, the average advance was 4.0% y/y and 4.5% y/y for the core manufacturing sector.

The food industry had a high weight in the manufacturing sector. Posted 5.0% y/y advance. Fastest-growing industries were the manufacturing of transport equipment (other than road transport equipment) with a combined 30% y/y advance for the three months, the pharma industry (+21% y/y), and the manufacturing of electronic and optical devices (+18% y/y).

Regarding the trend identified over the past 12 months, the overall industrial output features a 2.9% annual (p.a.) advance with 3.7% p.a. For the core manufacturing sector, the pharma industry stands out with 38% p.a. advance, followed by the manufacturing of road transport means (including automobiles) with 15% p.a., the manufacturing of machinery and equipment (+14% p.a.), and the rubber and plastic industry (+11% p.a.). The food industry shows a negative (-6% p.a.) trend.

(Photo source: Silviu Matei/Dreamstime.com)