Latvia: Industrial production rebounds in October
December 6, 2010
In October, industrial production surged 21.1% over the same month last year, which was above the 19.5% expansion observed in September. The reading represented the fastest annual growth observed since records began in 2001. October's rapid pick-up was helped by a low base of comparison, as industrial production contracted 13.3% in October 2009. The October result was mainly driven by a strong expansion in manufacturing (September: +20.2% year-on-year; October: +25.1% yoy). Simultaneously, mining and quarrying grew 18.2% annually, which was above the 15.4% increase tallied in September. Only electricity and gas supply decelerated sharply compared to the previous month (September: +16.6% yoy; October: +3.8% yoy). A month-on-month comparison confirms the robust performance suggested by annual figures, with industrial output rising 1.2% over the previous month in seasonally adjusted terms, which contrasted the 1.8% fall observed in September. The trend continues to point to a strong recovery, with the annual average growth in industrial production jumping from 8.0% in September to 10.8% in October, which marked the fastest pace in nearly a decade.
Author: Ricardo Aceves, Senior Economist