Portugal: Industrial production drops sharply in May
June 30, 2016
In May, Portugal’s industrial production contracted substantially and lost part of the ground gained in April. Industrial output decreased 2.0% over the same month last year, which marked a sharp decline over the 3.5% expansion observed in April and the fastest decrease in nearly three years. May’s contraction reflected a sharp drop in manufacturing output and a decrease in mining and quarrying. Conversely, electricity generation showed another healthy increase.
Sequential data corroborated that industrial production deteriorated in May. Output decreased 3.7% in May in seasonally-adjusted terms, which partially reversed the 5.3% decrease tallied in April. Due to the strong contraction in May, the trend now points downwards. Annual average growth in industrial production fell from 2.2% in April to 1.7% in May.
Author: Ricardo Aceves, Senior Economist