Greece: Industrial production moderates rate of contraction in August
October 11, 2010
In August, industrial production fell 2.1% over the same month last year, which represented an improvement compared to the 9.1% drop registered in July. However, the industrial sector remains mired in recession despite the favorable base effect. The improvement in August was driven by a rebound in mining and quarrying, which expanded 3.1% year-on-year contrasting the 15.8% contraction in July, as well as a better performance of water supply (July: -5.9% yoy; August: +2.3% yoy) and electricity supply (July: -6.0% yoy; August: +0.2% yoy). Nonetheless, the all-important manufacturing sector remains in negative territory, decreasing 3.9% yoy, which represents a slower rate of contraction compared to the 9.7% drop in the previous month. Despite the monthly reading, the trend continues to improve, as the annual average variation in industrial production stepped up from minus 7.0% in July to minus 6.4% in August.