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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

Romania’s industry undergoes slowdown driven by car manufacturing in May

Romania’s industrial production dropped by 6% in May compared to April, in absolute terms, and by 8.5% in seasonally adjusted terms, according to the statistics office INS.

A large part of the slowdown can be attributed to the car manufacturing sector (-13.2% mom) and its related horizontal sectors: electronics, rubber & plastic parts manufacturing. Even the construction materials manufacturing sector (non-metallic minerals), particularly strong recently thanks to the buoyant constructions sector, dropped by 3.5% mom in May.

With several notable exceptions (such as metallic constructions manufacturing, +5.0% mom), the quasi totality of industrial sectors posted negative dynamics in the month.

Compared to May 2020 - when the industry was deep into crisis - the production index boasted a significant 28.8% annual advance. However, compared to May 2019, before the crisis, the industrial activity in Romania lags still by 10.3% a of May 2021.

Notably, Romania’s industry boasted encouraging recovery until April - when the production was 3% above that in April 2019.

The slump in May can be partly attributable to the semiconductors crisis: the drop in car production and related industries account for 2.6pp of the 6% mom industrial production contraction. Another 1.4pp was a seasonal effect of lower utilities delivered.

The remaining 2pp reflects the uncertain, sluggish, and volatile recovery of the global manufacturing chains that remain the major risk for the post-Covid recovery, particularly for an industry so dependent on foreign industrial groups like Romania’s.

andrei@romania-insider.com

(Photo source: Pixabay.com)

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

Romania’s industry undergoes slowdown driven by car manufacturing in May

Romania’s industrial production dropped by 6% in May compared to April, in absolute terms, and by 8.5% in seasonally adjusted terms, according to the statistics office INS.

A large part of the slowdown can be attributed to the car manufacturing sector (-13.2% mom) and its related horizontal sectors: electronics, rubber & plastic parts manufacturing. Even the construction materials manufacturing sector (non-metallic minerals), particularly strong recently thanks to the buoyant constructions sector, dropped by 3.5% mom in May.

With several notable exceptions (such as metallic constructions manufacturing, +5.0% mom), the quasi totality of industrial sectors posted negative dynamics in the month.

Compared to May 2020 - when the industry was deep into crisis - the production index boasted a significant 28.8% annual advance. However, compared to May 2019, before the crisis, the industrial activity in Romania lags still by 10.3% a of May 2021.

Notably, Romania’s industry boasted encouraging recovery until April - when the production was 3% above that in April 2019.

The slump in May can be partly attributable to the semiconductors crisis: the drop in car production and related industries account for 2.6pp of the 6% mom industrial production contraction. Another 1.4pp was a seasonal effect of lower utilities delivered.

The remaining 2pp reflects the uncertain, sluggish, and volatile recovery of the global manufacturing chains that remain the major risk for the post-Covid recovery, particularly for an industry so dependent on foreign industrial groups like Romania’s.

andrei@romania-insider.com

(Photo source: Pixabay.com)

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