Latvia: Industrial output contracts in July and marks seventh fall in the last eight months
September 3, 2014
In July, industrial production contracted 1.5% over the same month last year. The print followed the 2.0% decrease observed in June and marked the 7th contraction in the last eight months. July’s deterioration was broad-based and the only sub-category that showed an improvement was electricity and gas supply.
However, sequential comparison does not confirm the deterioration suggested by the annual data. Industrial output expanded a seasonally-adjusted 1.4% in July, which recovered from the 1.3% contraction observed in June.
Moreover, the overall trend continued to point to a deterioration in output. Annual average growth in industrial production fell from minus 0.8% in June to minus 1.2% in July.
Author: Ricardo Aceves, Senior Economist