Latvia: Industrial production weakens in August
October 4, 2011
In August, industrial production expanded 6.4% over the same month last year, which was below the 9.2% increase observed in July. The print marked the slowest pace since February 2010 and fell short of market expectations of a 7.5% rise. The slowdown reflected weaker growth in manufacturing as well as in electricity and gas supply. In contrast, mining and quarrying rebounded compared to the previous month. A month-on-month comparison confirms the weak expansion suggested by the annual figures, as industrial output fell a seasonally adjusted 0.40% in August, which contrasted a 0.50% increase in July. Industrial production growth reached its peak in June and the downward trend continued for a second consecutive month, with annual average growth dropping from 14.4% in July to 13.1% in August, which suggests that industrial output is losing momentum.
Author: Ricardo Aceves, Senior Economist