Romania’s industrial output increased by 11.6% y/y in October (the growth rate was 12.9% y/y for manufacturing industries), in line with the bright performance demonstrated since March, according to data published by the statistics office.
The seasonally-adjusted production index advanced by 1.0% m/m (2.4% m/m for manufacturing), but the index failed to surpass the decade’s record hit in May 2017. The seasonally-adjusted index is showing slower growth since May and higher volatility.
The index had performed outstandingly during the previous year (the adjusted index soared by 15% y/y as of May), since mid-2016, but high growth rates are not likely to be supported for long period of time. However, the stronger investment in Q3 revealed by both gross fixed capital formation and net investments (10.3% up y/y) demonstrate the resilience of investors’ confidence, setting grounds for further industrial growth.
Detailed industrial data published by the statistics office reveal the robust performance of the automobile and electric equipment. Thus, the output in the two sectors in January-October advanced by 16.1% y/y and 28.4% y/y respectively, compared to the 8.2% y/y average industrial production increase.
The food and beverages industries advanced at slow rates of 1.0% y/y and 2.8% y/y, though. Crude oil processing edged up modestly by 0.7% y/y as well. Against a low base and despite negative long-term dynamics, metallurgy advanced by an impressive 7.9% y/y -- almost as much as the 8.0% y/y advance of the electronic and optic devices production (car parts largely).