Portugal: Industrial sector contracts at the sharpest pace in nearly seven years in March
April 30, 2019
Portugal’s industrial sector remained in the doldrums at the end of the first quarter, contracting at a much sharper pace in March compared to February. Industrial production fell 7.6% over the same month of the previous year in March, down from a revised 2.1% decline in February (previously reported: -2.5% year-on-year). It was the sharpest contraction since April 2012, and reflects a wider downturn in industrial activity in the Eurozone amid ebbing global momentum. Steep losses in the electricity, gas, steam and air conditioning supply sub-sector led the notable downturn, along with a swing to contraction in manufacturing output. These more than offset a noteworthy acceleration in the mining and quarrying sub-sector.
In seasonally-adjusted, month-on-month terms, industrial output fell 1.3% in March, slighter softer than February’s revised 1.6% drop (previously reported: -1.5% month-on-month). Meanwhile, the annual average variation in industrial output fell to minus 1.5% in March, from minus 0.6% in February.
Author: Nihad Ahmed, Economist