Slovakia: Industrial production surges in August
October 11, 2016
In August, industrial production improved notably as it grew 17.5% from the same month last year, which was the highest rise since March 2008. The reading contrasted the revised 14.0% contraction in July (previously reported: -14.3% year-on-year). According to the Statistical Institute, August’s jump was driven by an increase in all three components of the index: manufacturing; electricity, gas, steam and air-conditioning supply; and mining and quarrying. More specifically, the sharp rise in manufacturing mainly reflects a base effect, since holidays in the car manufacturing sector took place in August this year, while last year they took place in July. The car manufacturing sector is the backbone of Slovak 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 rose an unprecedented 28.2% in seasonally-adjusted terms in August. The print contrasted the 15.9% contraction registered in July. Due to August’s strong figure, annual average growth in industrial production increased from 2.9% in July to 4.4%.
Author: Luis Lopez Vivas, Economist