Industrial slowdown in Romania softens in January, but outlook remains grim

Romania’s industrial production decreased in year-on-year terms for the eighth month in a row in January, when the gross industrial production was 2.4% lower than 12 months earlier.

The annual decline was, however, softer compared to the 3.5% year-on-year decline in December 2019 and the 5.4% year-on-year plunge in November.

The seasonally-adjusted index reveals an even more visible recovery in January - which came in contrast to managers’ expectations, but is likely to be short-lived in the context of the deteriorating external circumstances.

The core manufacturing segment shrank for the ninth consecutive month, by 1.3% year-on-year, while the mining and quarrying fell for the ninth month in a row, by 2.1% year-on-year, the statistics office INS announced. The energy and utilities branch also decreased for the seventh consecutive month, by 7.8% year-on-year.

The most relevant declines were recorded in January in the timber industry (-21.3% year-on-year ), clothing manufacturing (-17.7%), leather industry (-10.4%), and metallurgical industry (-9.4%).

On the upside, the production increased in the manufacturing of other non-metallic mineral products (mainly construction materials, +12.6% year-on-year), manufacturing of electrical equipment (+14.3%), and pharmaceuticals (+16.1%).

Notably, the seasonally-adjusted industrial production improved in January above the levels seen in October-December. Compared to December, the workday and seasonally-adjusted production index rose by nearly 2%. The rise in the core manufacturing segment was even stronger, 3.2%.

editor@romania-insider.com

(Photo source: Pixabay.com)

Normal

Industrial slowdown in Romania softens in January, but outlook remains grim

Romania’s industrial production decreased in year-on-year terms for the eighth month in a row in January, when the gross industrial production was 2.4% lower than 12 months earlier.

The annual decline was, however, softer compared to the 3.5% year-on-year decline in December 2019 and the 5.4% year-on-year plunge in November.

The seasonally-adjusted index reveals an even more visible recovery in January - which came in contrast to managers’ expectations, but is likely to be short-lived in the context of the deteriorating external circumstances.

The core manufacturing segment shrank for the ninth consecutive month, by 1.3% year-on-year, while the mining and quarrying fell for the ninth month in a row, by 2.1% year-on-year, the statistics office INS announced. The energy and utilities branch also decreased for the seventh consecutive month, by 7.8% year-on-year.

The most relevant declines were recorded in January in the timber industry (-21.3% year-on-year ), clothing manufacturing (-17.7%), leather industry (-10.4%), and metallurgical industry (-9.4%).

On the upside, the production increased in the manufacturing of other non-metallic mineral products (mainly construction materials, +12.6% year-on-year), manufacturing of electrical equipment (+14.3%), and pharmaceuticals (+16.1%).

Notably, the seasonally-adjusted industrial production improved in January above the levels seen in October-December. Compared to December, the workday and seasonally-adjusted production index rose by nearly 2%. The rise in the core manufacturing segment was even stronger, 3.2%.

editor@romania-insider.com

(Photo source: Pixabay.com)

Normal
 

facebooktwitterlinkedin

1

Romania Insider Free Newsletters