Estonian industrial production fails to maintain fast growth rate in July

Estonian industrial production fails to maintain fast growth rate in July
The figures extend a growth trend that began in September last year, reinforcing forecasts that the Estonian economy is due to pick up speed in 2017.
By bne IntelliNews September 1, 2017

Estonian industrial production expanded 4.7% y/y in July, working-day adjusted data from Statistics Estonia showed on September 1.

The July expansion falls well below the 14.5% annual expansion rate recorded the previous month. It does extend a growth trend that began in September last year, reinforcing forecasts that the Estonian economy is due to pick up speed in 2017.

Estonian GDP grew 1.6% in 2016, improving on the six-year low of 1.1% the preceding year. The economy made a good start to 2017, with first quarter GDP growing 4.4% and surging to 5.7% y/y in April-June. Expansion forecasts for 2017 range from 2.3% by the European Commission to beyond 3.5%, according to Swedbank.

In unadjusted annual terms, industrial production grew 4.7% as well. In monthly terms, output fell a seasonally adjusted 3.1%.

Production increased in two out of three main segments of industry in July in annual terms. Mining expanded 26.1% on the year while the manufacturing segment grew 3.7% y/y. Only production in the energy segment decreased, by 2.3% y/y. Most manufacturing sub-segments increased output, save for computers, electronics and optical products, and wood and wood products.

Around 66% of industrial output was sold on the external market. According to unadjusted data, export sales of manufacturing production grew 5% y/y in July, while domestic sales rose 13% y/y.

Data

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