Lithuanian industrial production growth slows down minimally in December

Lithuanian industrial production growth slows down minimally in December
By bne IntelliNews January 23, 2018

Lithuanian industrial production growth slowed down to 7.6% y/y in December on a calendar-adjusted basis, according to data from Statistics Lithuania released on January 23.

The December reading sees output expand only at a very slightly slower rate than the 7.8% annual growth recorded for November. December marks the 16th straight month of growth, with expansion only infrequently falling below the 5% line. The continuous growth of industrial production should keep the Lithuanian economy – which grew 2.2% in 2016 and 3.4% y/y in the third quarter – on a path to beat last year’s performance, in line with forecasts.

The Lithuanian economy will grow 3.5% in 2017, according to the International Monetary Fund’s World Economic Outlook. The European Commission’s estimate is more conservative at 2.9%.

In monthly seasonally and calendar-adjusted terms, industrial activity fell 2.6% in December, while unadjusted data recorded growth of 5.3% y/y and a retreat of 4% m/m. In nominal terms, Lithuanian industry turned out product to the tune of €1.8bn in December, compared to €1.9bn in November.

The adjusted annual growth owes to expansion across all the main sectors. Production in the manufacturing segment grew 8.3% on the year, while in mining and quarrying it boomed 34.1% y/y. The water supply, sewage treatment, and waste management segment saw production expand 2% y/y. Output in the utilities segment grew 1.1% y/y.