Slovakia: Industrial production drops sharply in July
September 12, 2016
Industrial production dropped 14.3% annually in July, which contrasted the revised 2.3% expansion in June (previously reported: +2.2% year-on-year). According to the Statistical Institute, July’s contraction was mainly driven by a decline in manufacturing output as well as an in mining and quarrying. More specifically, the sharp decline in manufacturing corresponds to the early summer break taken by the car manufacturing sector, which is the backbone of Slovakia’s industry. The country has the highest per capita car output in the world and will add another car factory owned by Jaguar Land Rover in 2018.
On a monthly basis, industrial production fell 15.9% in seasonally-adjusted terms in July. The print followed the 1.3% contraction registered in June. Due to weaker results registered in June and July, annual average growth in industrial production declined from 5.0% in June to 2.9%.
Author: Luis Lopez Vivas, Economist