Latvia: Industrial output contracts at the sharpest rate in over 10 years in January
March 10, 2020
Industrial production dipped 4.5% in annual working-day adjusted terms in January, worsening from December’s 3.2% decrease. The result marked the strongest contraction in industrial output since December 2009.
January’s deterioration was chiefly driven by a downturn in the all-important manufacturing sector where activity contracted for the third month running. On top of that, energy output slumped markedly at the outset of the year, further weighing on January’s result. On a more positive note, mining and quarrying output rebounded in the first month of 2020, expanding for the first time in nine months and thus softening the overall contraction.
In seasonally-adjusted month-on-month terms, industrial production fell 1.9% in January, following a 0.6% contraction in December. Meanwhile, annual average industrial production growth edged down to 0.5% in January, from 0.7% in the final month of last year.
Author: Almanas Stanapedis, Economist