Austria: Industrial output expands at over one-year high quick pace in January
Industrial output expanded 3.6% month-on-month in January, swinging from December’s 1.1% contraction and marking the strongest increase since July 2020. The increase in output at the outset of the year was driven by a return to growth in intermediate, durable and non-durable consumer goods production. Capital goods output contracted for the second month running, however.
On an annual basis, industrial production jumped 13.9% in January, up from the 8.0% increase logged in December. Furthermore, the trend improved, with annual average growth of industrial production rising to 11.8% in January, from December’s 10.3% expansion.
While the data highlights a robust start to the year, recent events suggest that the industrial sector will suffer a setback in the months ahead.
Analysts at the EIU added:
“In the light of the Russia-Ukraine war, we have revised down our GDP forecast, from 3.9% to 3.7%, reflecting the weaker growth in Austria’s main trading partners and additional supply-chain disruptions affecting the Austrian manufacturing sector, with its close ties to German manufacturers. German car producers, for example, have already reduced output as a result of the war because essential components manufactured in Ukraine are no longer available.”