Latvia: Industrial production slows in July
September 5, 2011
In July, industrial production expanded 9.2% over the same month last year, which represented a deceleration compared to the 13.0% expansion observed in June. The print, which marked the first single-digit rate of growth in industrial output, fell short of market expectations of a 10.3% rise. The monthly slowdown was mainly the result of a sharp deceleration in mining and quarrying, which expanded 5.1% year-on-year (June: +20.3% yoy). In addition, manufacturing grew 10.8% in July, below June's 14.8% expansion. Only electricity and gas supply accelerated compared to the previous month. A month-on-month comparison confirms the slowdown suggested by the annual figures, as industrial output grew a seasonally-adjusted 0.60% in July, below the 1.70% expansion tallied in June. Owing to the July outturn, the upward trend in place since November 2009 came to a stop, suggesting that industrial output growth has already reached its peak and will lose momentum in the coming months. Annual average growth in industrial production fell from 15.5% in June to 14.4% in July.
Author: Ricardo Aceves, Senior Economist