Croatia's working-day adjusted industrial output posted an annual rise of 3.3% in May after recording declines in the previous two months, according to data from the statistics institute (DZS).

Industrial production in Croatia registered annual increases for 25 consecutive months until March. The continuous growth in industrial output was largely supported by the recovery in both domestic and foreign demand. However, problems related to the debt crisis at retail giant Agrokor seemed to have curbed industrial production growth in the following two months.

The European Commission said in its Spring 2017 Economic Forecast that the deterioration in industrial production in Q1, particularly in the consumer goods segment, was possibly due to the distressed situation at Agrokor. 

May data points to a recovery and positive trend is expected to continue in parallel with the recovery in Agrokor’s operations.

On a seasonally and working day-adjusted basis, industrial production expanded by 2.4% m/m in May, after contracting by 1.9% m/m in April.

In January-May, working-day adjusted industrial production went up 1.7% y/y.

Output of consumer durables and non-durable consumer goods contracted in the first five months of 2017, while intermediate goods industry posted the highest annual growth of 6% compared to the other sub sectors, energy and capital goods.

In 2016, industrial output grew 5% y/y, higher than the 2.6% annual growth recorded in 2015.

Croatia's economic sentiment indicator (ESI) rose slightly by 0.5 points m/m to 115.8 in June from 115.3 in May.

Industrial sales rose by 3.4% y/y in April, deescalating sharply from a 15.2% increase in the previous month. In January-April as a whole, industrial turnover grew 7.6% y/y. Industrial sales on the domestic market rose by 5% y/y in the first four months of 2017, whereas sales abroad went up 11% compared to the same period of 2016.

Annual industrial producer price inflation in Croatia slowed down from 2.9% y/y in April to 1.8% y/y in May.