Latvia: Industrial output grows at slowest pace since February 2010
November 5, 2012
In September, industrial production grew 3.1% over the same month last year, which represents a significant slowdown compared to the revised 9.4% expansion recorded in August (previously reported: +8.1%). The print marks, in fact, the slowest pace recorded since February 2010. The subdued reading resulted from slower growth in manufacturing production, coupled with a continuing deterioration in the mining and quarrying as well as the electricity generation sectors. A month-on-month comparison confirms the significant deceleration suggested by the annual figures, as industrial production contracted a seasonally adjusted 2.8% in September, which marks a complete reversal of the revised 2.6% increase observed in August (previously reported: +2.0% month-on-month) and represents the lowest reading since July 2009. As a result of the deterioration, the trend reversed its upward trajectory, with annual average growth in industrial production dropping from 6.8% in August to 6.2% in September.
Author: Ricardo Aceves, Senior Economist