Romania’s industrial production (chart) increased by 0.3% y/y in October, maintaining positive momentum despite a contraction in the core manufacturing segment, according to data published by the National Institute of Statistics (INS) on December 15. Growth was supported by a strong expansion in utilities output.

INS data showed that manufacturing production declined by 0.3% y/y in October, while output in the utilities sector surged by 6.6% y/y. The robust performance of utilities offset the weakness in manufacturing and lifted overall industrial activity into positive territory.

On a monthly basis, seasonally adjusted industrial output rose by 0.4% m/m in October. This increase came despite a 0.5% m/m contraction in manufacturing production, reflecting again the contribution of non-manufacturing industrial segments.

The utilities sector provided support amid volatile demand conditions, benefiting from seasonal factors and higher activity levels compared with the same period last year. Manufacturing, by contrast, remained under pressure from subdued domestic and external demand, INS data indicated.

Looking at the broader trend, industrial production over the rolling twelve-month period to October contracted by 0.8% y/y. The decline was mirrored in the core manufacturing segment, which also posted a 0.8% y/y decrease over the same reference period.

INS figures suggest that while short-term dynamics have stabilised, Romania’s industrial sector has yet to recover fully from the prolonged slowdown experienced over the past year. 

Recent monthly gains point to tentative stabilisation, but sustained recovery will depend on stronger demand conditions and improved performance in manufacturing.