Estonian July industrial production down 5 pct y-o-y

According to Statistics Estonia, in July 2008 the industrial production decreased 5 pct compared to July of the previous year.

The decrease in the industrial production was essentially affected by a continuous decrease in electricity production — compared to July of the previous year, the production of electricity decreased 29 pct. As before, the decrease in electricity production was caused by a partial replacement of own production with the imports of electricity — in July nearly one third of the consumed electricity was imported. The production of heat decreased 2 pct compared to July of the previous year.

In manufacturing, the production decreased 0.3 pct. The main reason for this was the decrease in orders, first of all on the internal market. According to the information of the Estonian Institute of Economic Research, more than half of enterprises mentioned insufficient demand as the key factor hindering the growth. The decrease in the production of manufacturing was mainly influenced by the production of food, wood and building materials. The decrease in the manufacturing of food is continually affected by price increase and by the decrease in consumption resulting from it. Due to the decrease in construction volumes, the production of building materials is continually in a declining trend — the production of building materials decreased 27 pct compared to July of the previous year. The downward trend continued in the manufacturing of wood, the production of plastic products also decreased.

In July, production increased primarily in the export-oriented branches of industry — in the manufacture of metal products, chemical products, electrical machinery. Production grew in all branches of machinery and apparatus manufacturing, where the share of exports was 64% in the manufacture of machinery and 97 pct in the manufacture of radio apparatus.

In July compared to June, the seasonally adjusted industrial production of Estonia increased 0.3 pct.

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