Finland: Industrial production continues to contract in May
July 10, 2013
In May, industrial production contracted a working-day adjusted 5.9% over the same month last year. The figure followed the 8.7% plunge seen in April and represents the seventh consecutive contraction. According to Statistics Finland, output in 2 out of the four main sectors decreased in May. In particular, the all-important manufacturing fell 8.7%, offsetting a hefty 38.6% expansion in mining and quarrying.
A month-on-month comparison, however, does not corroborate the decline suggested by the annual data, as industrial output increased a seasonally adjusted 1.7% in May, contrasting the 4.0% fall observed in April. Moreover, as a result of the negative annual reading, the annual average growth in industrial production decreased from minus 2.1% in April to minus 2.5% in May.
FocusEconomics Consensus Forecast panellists expect industrial production to grow 0.8% this year, which is down 1.1 percentage points from last month's forecast. For 2014, the panel sees industrial production accelerating to 2.9%.