Estonian industrial production contracts 3.8% y/y in June

Estonian industrial production contracts 3.8% y/y in June
By bne IntelliNews August 1, 2019

Estonian industrial production fell 3.8% y/y in June, working-day adjusted data from Statistics Estonia showed on July 31. The decline follows an expansion of 1.2% y/y the preceding month.

The reading marks a return to a patchy performance from Estonia’s industrial sector, pointing to a slowdown in economic growth in 2019. While the Estonian GDP growth beat expectations in January-March, expanding 4.5% y/y in unadjusted terms (4.6% y/y upon adjustment), it is expected to come in at below 3% in 2019, optimistic Q1 data notwithstanding. The Baltic state’s GDP growth came in at a solid 3.9% in 2018.

Broken down by main segments, manufacturing output expanded a working day adjusted 2.2% y/y in June, data showed. 

Production in mining dropped 29.2% y/y while output in the energy sector crashed 51.2% in annual terms. Production of electricity fell 58% y/y and output in the heat segment declined 10% in annual terms.

Within the manufacturing sector, all but four segments suffered output falls. The fastest fall took place in the manufacturing of chemical products, at 10% y/y. On the positive side, the manufacture of computers, electronic, and optical products increased 24.9% on the year.

In unadjusted annual terms, industrial production declined 8.4% in June. In seasonally adjusted monthly terms, output retreated 5.7%.

Some 68% of industrial output was sold on the external market, Statistics Estonia also reported. According to unadjusted data, export sales of manufacturing production fell 2% in y/y terms in June while domestic sales declined 7% y/y.