Romania’s industry posts negative growth in five of past six months as of August

Romania’s seasonally adjusted industrial output has recovered slightly in July-August, particularly the manufacturing industries, which rose by a combined 2.4%, but this hasn’t invalidated the sluggish performance seen since the beginning of the year.

As more industrial companies will curtail or even stop (Azomures, Alro) operations amid rising energy prices and scarce natural gas,industrial performance is likely to deteriorate further.

In five of the past six months, the industrial output index posted negative annual performances, and for the whole year-to-date period, it posted a 1.2% YoY contraction (only 0.1% for the manufacturing industries).

The value added generated by the industry in H1 contracted by 1%, in line with the (gross) industrial production index, and the steeper contraction in July-August heralds an even tougher negative impact in the third quarter of the year.

(Photo source: Michal Bednarek | Dreamstime.com)