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Industrial output up by 6.3 percent year-on-year in February

Following a temporary slow-down in January, output in the industrial sector rose by 6.3 percent year-on-year, and thus the sector posted output growth of 3 percent in the first two months of this year. Among major industrial sectors, the largest sub-sector – manufacturing – posted output growth of 7.5 percent in February, compared to the corresponding period of the previous year.

In light of favorable car industry demand in foreign markets and the volume of orders, the ministry for national economy is expecting further expansion in the sector for the remainder of the year.

The workday adjusted indicator showed growth of 1.8 percent year-on-year. The difference between adjusted and unadjusted data stems from the fact that 2016 is a leap year with an extra workday in February.

Growth was registered in ten out of the thirteen manufacturing sub-sectors. Among larger sub-sectors, output at motor vehicle manufacturers -- which generate some one-third of total manufacturing output volume – increased by 4.8 percent year-on-year. Out of two sub-sectors of large weight, volume growth at the manufacturing of road vehicles was modest, but the manufacturing of road vehicle components posted growth of 9.9 percent. Output at the manufacturing of rubber products grew by 12.1 percent. The two sub sectors added 2.5 percentage points to the entire sector’s output growth. The second largest sub sector, the manufacturing of electronic products, registered output increase of 19.6 percent, but manufacturers of electric equipment and metal products also saw significant output growth.

The volume of industrial exports rose by 8.5 percent in comparison to February 2015. The export volume of motor vehicle manufacturers, one of the two sub-sectors that together generate more than half of total manufacturing industry export volume, was up by 6.1 percent. Output at another major sub-sector -- the manufacturing of computers, electric and optical products -- which generates more than one-seventh of total manufacturing export volume, soared by 21 percent. As business climate and confidence indicators were upbeat in March, there is ample reason for optimism going forward.