Portugal: Industrial production falls again in January
March 2, 2015
In January, industrial production declined 2.1% over the same month of last year, which mirrored December’s revised 2.1% drop (previously reported: -3.5% year-on-year). According to Statistics Portugal (INE), January’s decline in industrial output reflected a sharp contraction in electricity, gas and water, which declined 7.2% in annual terms (December: +7.1% yoy). Manufacturing output also dropped, declining 1.1% (December: -3.6% yoy). Conversely, the mining sector expanded 21.0% (December: +9.5% yoy), which was the highest rate of growth since October 2011. Despite the notable performance in the mining sector, the increase was not large enough to offset the contraction in the manufacturing and electricity sectors.
Compared to the previous month, industrial output rose a seasonally-adjusted 0.8% in January. The result contrasted the 1.9% drop tallied in December and marked a three-month high. Annual average growth continued to worsen in January, falling to 0.5% from December’s 1.0% increase.
Author: Cecilia Simkievich, Economist