Latvia: Following strong momentum in November, output decelerates in December
February 3, 2016
Industrial production increased 2.6% year-on-year in December, which marked a deceleration over the revised 4.5% expansion tallied in November (previously reported: +4.3% year-on-year). November’s jump had marked the strongest increase since July 2015 and December’s moderation stemmed from a deceleration in the all-important manufacturing production, as well as in electricity generation. Conversely, mining and quarrying rebounded in the last month of 2015.
Sequential data suggested an even sharper deterioration than the deceleration suggested by the annual data as industrial production plunged 1.3% in December over the previous month when adjusted for seasonal factors. The reading contrasted the 0.2% expansion observed in November and marked the fastest month-on-month decrease since August 2015.
In 2015, as a whole, Latvia’s industrial production expanded 3.4%, showing the beginning of a recovery from the contractions registered in the prior two years.
Author: Ricardo Aceves, Senior Economist