Portugal: Industrial production rebounds in June
July 29, 2016
In June, Portugal’s industrial production rebounded and regained part of May’s lost ground. Industrial output increased 1.1% over the same month last year, which contrasted the 2.1% decline observed in May. May’s contraction represented the fastest decrease in nearly three years. Meanwhile, June’s rebound was due entirely to another double-digit expansion in electricity generation—a volatile sub-component. Conversely, manufacturing output and mining and quarrying continued to decrease, although at a slower pace than in the previous month.
Despite the rebound, the trend continues to suggest moderation. Annual average growth in industrial production fell from 1.7% in May to 1.5% in June.
Sequential data corroborated the improvement suggested by the annual data. Industrial output increased a seasonally-adjusted 2.5% over the previous month in June, which was an improvement on the 3.5% decrease tallied in May.
Author: Ricardo Aceves, Senior Economist