Lithuanian industrial production growth picked up speed in January, expanding 8.4% y/y on an adjusted basis, according to data from Statistics Lithuania released on February 23.
The gain sets 2017 off to a good start after an erratic 2016, when periods of solid growth alternated with contraction. Nevertheless, the expansion in January is the fifth straight month of growth, and the fourth month in which output expansion accelerated.
Should the trend continue, GDP - which expanded 2.2% in 2016 - would be well positioned to beat last year’s result, in line with forecasts. Economic expansion is likely to push to 2.9% in 2017, the European Commission forecast earlier this month.
On an unadjusted basis, annual production grew 11.5% y/y in January, while in monthly terms, growth came in at adjusted 1.9%. It fell 2.1% in unadjusted terms. In nominal terms, Lithuanian industry turned out product to the tune of €1.67bn in January.
The adjusted January growth owes exclusively to manufacturing output booming over 12.3%, while production in other segments waned. Mining and quarrying contracted 4.4%, production in the water supply segment fell 1.6%, while in the utilities sector, the decrease came in at over 12%.