Finland: Industrial production continues to contract in July
September 10, 2013
In July, industrial production contracted a working-day adjusted 2.5% over the same month last year. The figure followed the 5.8% reduction seen in June and represents the ninth consecutive contraction. According to Statistics Finland, output in three of the four main sectors of industrial production decreased in July. In particular, the all-important manufacturing sector fell 4.9%, offsetting a hefty 39.1% expansion in mining and quarrying.
A month-on-month comparison, however, does not corroborate the decline that July's annual data suggests, as industrial output increased a seasonally-adjusted 2.0% in July, contrasting the 1.0% fall observed in June. As a result of the negative annual result, however, annual average growth in industrial production decreased from minus 3.2% in June to minus 3.5% in July.
FocusEconomics Consensus Forecast panelists expect industrial production to grow 0.8% this year, which is down 1.1 percentage points from last month's forecast. For 2014, the panel sees industrial production accelerating to 2.9%.
Author: Carl Kelly, Economist