Austria: Industrial production rises sharply in January but outlook is uncertain
March 25, 2020
At the start of the year, Austrian industrial production grew at a four-year high of 4.2% month-on-month, swinging from the revised 0.2% contraction in December (previously reported: -2.0% month-on-month). The headline figure came on the back of skyrocketing durable consumer goods output while production of intermediate and capital goods also surged. This more than offset a drop in non-durable consumer goods output.
Compared to the same month a year earlier, industrial production rose 1.2% and contrasted the revised 3.0% drop in December (previously reported: -5.3% year-on-year). Annual average production growth, meanwhile, eased to 1.4% from 1.7% in December.
The strong start to the year is likely to prove short-lived as the impact of the coronavirus pandemic has not yet been reflected. This year, the industrial sector is expected to be in rough waters, with the outlook hinging on the longevity and severity of the pandemic.
Author: Jan Lammersen, Economist