Estonian industrial production builds more momentum in November

Estonian industrial production builds more momentum in November
By bne IntelliNews January 4, 2017

Estonian industrial production expanded 9.3% y/y in November, working-day adjusted data from Statistics Estonia showed on January 4.

The result builds on a positive trend seen since the start of the second half that saw growth push to over 6% in September and 4.6% the following month. The November reading strengthens hope that wider economic expansion could still pick up some of the slack this year.
GDP grew just 1.1% y/y in 2015, the slowest rate in six years. The economy improved somewhat in January-March, growing 1.7% y/y, but faltered again in the second and third quarters. The European Commission forecasts last year's Estonian growth will be capped at the 2015 level, a downward revision from 1.9% predicted in May.

In unadjusted annual terms, industrial production fared better still, expanding 12%. In monthly terms, output gained a seasonally adjusted 1.5% in November.

As in the previous month, the energy sector drove the headline figure, as it boomed 35.1% y/y, Statistics Estonia noted. That came on the back of a boost in power production of 39% and a 32% growth in heat production. 

Of the other two key segments, output in the mining sector grew 17.7% on the year, while manufacturing expanded 5.4%. Manufacture of electrical equipment grew 26.9% while output in the textiles segment grew 19%. The only segment to see production falter was furniture, where output dwindled 4.2%. 

Some 70% of total industrial output was sold on the external market, as has been the case for several months. According to unadjusted data, export sales of manufacturing production increased 9% y/y and domestic sales rose 7%, also on annual terms.