Latvia: Industrial output moderates in March but sequential data suggest solid growth
May 6, 2016
Industrial production expanded 2.7% year-on-year in March, which came in below the 3.8% increase in February. According to the statistical office, March’s moderation reflected slower growth in manufacturing output as well as in electricity generation. An additional drag on output growth was a contraction in mining and quarrying.
However, looking at sequential data, industrial production surged a seasonally-adjusted 4.3% in March when compared to the previous month. The reading came in above the revised flat reading observed in February (previously reported: -0.1% month-on-month).
Owing to the moderation in the annual data, the trend changed course. Nonetheless, it still suggests a healthy performance in output. Annual average growth in industrial production fell from 4.6% in February to 4.1% in March.
Author: Ricardo Aceves, Senior Economist