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Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at [email protected] 

 

Romania’s industrial output still 12% behind pre-crisis level

Romania's seasonal and workday adjusted industrial production index advanced by another 3.3% in July compared to June, according to the National Statistics Institute (INS).

Still, it lags 12% behind the level reached in February before the crisis.

The recovery has been faster in the core manufacturing sector (+4.4% month-on-month), where the lag is only 10% versus February.

The industrial production contraction was abrupt in March-April: 37% for the whole industry and 42% for the manufacturing sector.

The slow recovery in foreign trade has also hindered the recovery of the local industry. Exports in July also lagged 10% compared to February.

In annual terms, Romania's industrial output was down 6.6% year-on-year in July (-7.0% year-on-year for the manufacturing sector), a visible improvement from -11% year-on-year (-10.6% in the manufacturing sector) in June. In the first seven months, the industrial production contracted by 14.9% compared to the same period last year.

The toughest hit industry was the automobile production (-30% year-on-year), and its recovery was robust but still incomplete (-14% year-on-year) in July. The car production probably returned to growth in August.

Food and beverage production posted positive 2-3% growth rates in July after disappointing (given the resilient demand) performance in the rest of the year.

Construction materials production was up 1.4% year-on-year in July despite a slight contraction in the first half of the year.

When it comes to broader categories, the 22% annual rise in the production of durable consumer goods in July came as a surprise. For the year-to-date period, the sector posted a double-digit contraction.

The capital goods output remains weak (-16% year-on-year). Production of consumable non-durables also remains in the negative territory (-6.1% year-on-year) while intermediate goods' production nearly recovered compared to last year (-1.3% year-on-year).

(Photo: Pexels.com)

[email protected]

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Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at [email protected] 

 

Romania’s industrial output still 12% behind pre-crisis level

Romania's seasonal and workday adjusted industrial production index advanced by another 3.3% in July compared to June, according to the National Statistics Institute (INS).

Still, it lags 12% behind the level reached in February before the crisis.

The recovery has been faster in the core manufacturing sector (+4.4% month-on-month), where the lag is only 10% versus February.

The industrial production contraction was abrupt in March-April: 37% for the whole industry and 42% for the manufacturing sector.

The slow recovery in foreign trade has also hindered the recovery of the local industry. Exports in July also lagged 10% compared to February.

In annual terms, Romania's industrial output was down 6.6% year-on-year in July (-7.0% year-on-year for the manufacturing sector), a visible improvement from -11% year-on-year (-10.6% in the manufacturing sector) in June. In the first seven months, the industrial production contracted by 14.9% compared to the same period last year.

The toughest hit industry was the automobile production (-30% year-on-year), and its recovery was robust but still incomplete (-14% year-on-year) in July. The car production probably returned to growth in August.

Food and beverage production posted positive 2-3% growth rates in July after disappointing (given the resilient demand) performance in the rest of the year.

Construction materials production was up 1.4% year-on-year in July despite a slight contraction in the first half of the year.

When it comes to broader categories, the 22% annual rise in the production of durable consumer goods in July came as a surprise. For the year-to-date period, the sector posted a double-digit contraction.

The capital goods output remains weak (-16% year-on-year). Production of consumable non-durables also remains in the negative territory (-6.1% year-on-year) while intermediate goods' production nearly recovered compared to last year (-1.3% year-on-year).

(Photo: Pexels.com)

[email protected]

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