Croatia: Industrial production falls back into recession in October
December 1, 2010
In October, industrial production fell 5.9% over the same month last year, which contrasted the 3.0% expansion recorded in the previous month. The reading marked a return to negative territory after industrial output posted two positive readings in August and September. In fact, the index is currently 14.5% below the pre-crisis peak of January 2008, showing that the country's industrial sector has still not fully recovered from the deep recession in 2009. The deterioration seen in October reflected a plunge in manufacturing, which swung from a 3.0% rise in September to a 7.1% contraction. In addition, both mining and quarrying and the production of electricity, gas and steam decelerated compared to the previous month. A month-on-month comparison corroborates the deterioration suggested by the annual figures, as industrial output dropped 3.76% over the previous month in seasonally adjusted terms, contrasting the 3.27% increase recorded in September. Nevertheless, annual average growth continued to improve, stepping up from minus 3.0% in September to minus 2.7% in October.