Portugal: Industrial output rebounds in March
Industrial output increased 0.5% year-on-year in seasonally-adjusted terms in March (February: -4.1% s.a. yoy). Looking at the details of the release, manufacturing production softened in March, while electricity, gas, steam and air conditioning supply output declined at a softer pace. Meanwhile, extractive industries output slowed.
On a seasonally-adjusted monthly basis, industrial output rose at a faster rate of 4.3% in March (February: +0.8% mom), the best result since August 2020. Meanwhile, annual average industrial production growth fell to 2.7% in March (February: +3.1%). This signals a worsening trend in the industrial sector.
Looking ahead, energy production is continues facing a setback amid a drought this winter, which is affecting hydroelectric power production—hydropower accounts for 30% of total energy production. Moreover, the increase in fuel prices should be denting the energy sector further.