Lithuanian industrial production growth slowed in February to 5.8% y/y on an adjusted basis, according to data from Statistics Lithuania released on March 21.
The reading is well below the gain of 8.4% registered in the first month of the year, but despite the slowdown, shows that growth remains solid. Output has not yet shown any sign of the volatility that characterised much of last year. The expansion in February was the sixth straight month of growth, although it did bring to an end an acceleration trend.
The early year results out of industry suggest GDP - which expanded 2.2% in 2016 - could 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.
However activity dropped 3.1% m/m, although adjusted data recorded a gain of 1.1%. On an unadjusted basis, annual production grew 3.7%. In nominal terms, Lithuanian industry turned out product to the tune of €1.59bn in February, a decrease on €1.67bn in the first month of the year.
The adjusted January growth owes to expansion across all sectors. Production in the manufacturing segment grew 4.3%, while in mining and quarrying it expanded 16.1%. Output in the utilities segment grew 17.2%, while production in the water supply segment gained 4%.