Latvia: Industrial production declines in June
August 5, 2013
Industrial production fell 0.4% over the same month last year in June (May: +0.9% year-on-year), which marks the fourth contraction in the last five months. The monthly deterioration mostly reflects the sharp contraction in electricity and gas supply, while manufacturing production showed weak growth in June.
The month-on-month comparison confirms the deterioration seen in the annual data; industrial production dropped a seasonally adjusted 0.2% in June, which contrasts the 2.2% expansion observed in May. As a result, the trend continues to point downwards, with annual average growth in industrial production dropping from 3.1% in May to 2.7% in June, the lowest level in almost three years.
FocusEconomics Consensus Forecast panellists expect industrial production to increase 4.4% this year, which is down 0.2 percentage points from last month's estimate. For 2014, the panel expects growth in industrial output to accelerate to 6.5%.
Author: Ricardo Aceves, Senior Economist