Latvia: Industrial production grows in May ending three months of declines
July 4, 2013
In May, industrial output expanded 0.6% over the same month last year (April: -1.0% year-on-year), which represents the first positive reading after three consecutive contractions. The monthly improvement mostly reflects a rebound in mining and quarrying activity (April: -14.8% yoy; May: +1.3% yoy), while manufacturing output fell, albeit at a slower pace.
A month-on-month comparison confirms the strong increase suggested by the annual data, as industrial production rose a seasonally adjusted 2.2% in May, which is well above the 0.5% expansion in April. Nonetheless, the trend continues to point downwards, with annual average growth in industrial production dropping from 3.6% in April to 3.1% in May.
FocusEconomics Consensus Forecast panellists expect industrial production to increase 5.5% this year, which is unchanged from last month's estimate. For 2014, the panel expects growth in industrial output to accelerate to 7.2%.
Author: Ricardo Aceves, Senior Economist