Estonia: Industrial production growth slows to a near two-year low in April
June 4, 2018
According to Statistics Estonia, annual industrial production growth decelerated in April from the previous month, coming in at a 22-month low of 2.2%, following a revised 6.2% (previously reported: +7.6% year-on-year) expansion in March. The cooling was led by a marked contraction in the mining sector: Output in April fell 6.0% in annual terms. Meanwhile, the manufacturing sector also performed poorly, growing a meager 1.1% year-on-year, as strong growth in the manufacture of machinery and equipment just offset a decline in the manufacture of building materials, furniture and textiles. Lastly, energy production expanded an impressive 17.4% annually in April, driving the month’s overall gains.
Looking at seasonally-adjusted month-on-month data, industrial production output contracted for the second time this year, falling 1.4% in April. The print reversed the previous month’s return to growth, when production expanded a revised 3.0% (previously reported: +4.1% month-on-month). Meanwhile, the annual average variation in industrial production dropped from 6.9% in March to 6.0% in April, marking the third consecutive month of decline.
Author: Almanas Stanapedis, Economist