Finland: Industrial production continues to fall at the outset of the year
March 8, 2013
In January, industrial production contracted a working-day adjusted 4.8% over the same month last year. The figure came in below the 0.7% decline seen in December and represents the third consecutive month of declining output. According to Statistics Finland, output in the electrical and electronics industry plunged 14.8% in January, which prompted the manufacturing sector to contract 7.0%, well below the 3.3% contraction seen in December. In addition, mining and quarrying as well as well as the water, sewage and waste sector deteriorated compared to December.
A month-on-month comparison corroborates the decline suggested by the annual data, as industrial output decreased a seasonally adjusted 3.6% in January, which contrasted the 1.0% increase observed in December. Moreover, as a result of the negative annual reading, the annual average growth in industrial production decreased from minus 1.6% in December to minus 1.7% in January.
FocusEconomics Consensus Forecast panellists expect industrial production to grow 1.5% this year, which is down 0.4 percentage points from last month's forecast. For 2014, the panel sees industrial production accelerating to 2.7%.