Latvia: Industrial production falls in August
October 4, 2013
Industrial production tumbled in August, contracting 3.5% over the same month last year. The reading contrasts the 2.1% expansion registered in July and marks the lowest reading since December of 2009. The deterioration was mainly led by a decrease in electricity and gas supply. Manufacturing also registered negative growth, although mining and quarrying continued to expand moderately.
A month-on-month comparison confirms the deterioration suggested by August's annual data. Industrial production contracted a seasonally-adjusted 2.0% in July, which contrasts the 1.7% rise observed in July. The trend continues to point downwards, with annual average growth in industrial output falling from 2.4% in July to 1.3% in August, the lowest level in more than three years.
FocusEconomics Consensus Forecast panelists expect industrial production to increase 3.4% this year, which is unchanged from last month's estimate. For 2014, the panel expects growth in industrial output to accelerate to 6.3%, which is also unchanged from last month's forecast.
Author: Carl Kelly, Economist