Portugal: Industrial production contracts in March
April 29, 2016
In March, Portugal’s industrial production contracted 0.3% over the same month last year. The result marked a substantial deterioration over the upwardly revised 2.1% increase observed in February (previously reported: 1.1% year-on-year) and the first drop in output since April 2015. Looking at the details, March’s drop was solely the result of a contraction in manufacturing output, which swung from a 2.0% increase in February to a 1.5% decrease in March. Conversely, mining and quarrying and electricity generation posted solid gains.
A month-on-month comparison corroborates the deterioration suggested by the annual data as industrial production contracted 0.7% in March in seasonally adjusted terms, which reversed the 0.7% rise tallied in February. Due to the year-on-year decline in change, the trend now points downward, following a peak in February. Annual average growth in industrial production fell from 2.3% in February to 1.9% in March, which suggests that the industrial sector is struggling to gain momentum.
Author: Ricardo Aceves, Senior Economist