Latvia: Industrial production contracts for the first time in 18 months
October 4, 2016
Industrial production in Latvia contracted 0.6% year-on-year in August, which contrasted the 2.6% increase in July. The result, the first decrease in a year and a half, reflected a contraction in mining and quarrying and in electricity generation. Moreover, the all-important manufacturing-output sub-component decelerated over the previous month.
Seasonally-adjusted month-on-month data show that industrial production decreased 2.1% over the previous month in August, which mirrored a similar contraction in July.
Due to the deterioration, the overall trend in industrial production points to a slowdown. Annual average growth in industrial output fell from 3.5% in July to 3.1% in August.
Author: Ricardo Aceves, Senior Economist