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.