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Estonia Industry June 2018

Estonia: Industrial production growth slows in June

According to Statistics Estonia, annual industrial production growth eased from a revised 3.4% reading in May (previously reported: +3.0% year-on-year) to 2.5% in June. The slowdown was largely driven by a soft performance in the manufacturing sector: Output growth slowed from 5.3% year-on-year in May to 1.5% in June, led by a marked slowdown in machinery and equipment output growth, as well as by contractions in the manufacture of wood and wood products, furniture, and building materials. The mining sector, however, picked up pace in June, expanding 16.5% annually in the month (May: 2.4% yoy). Energy production, meanwhile, swung from a 14.1% contraction in May to a 2.2% expansion in June.

On a seasonally-adjusted month-on-month basis, industrial production output contracted for the third consecutive month, falling 0.9% in June, a deterioration from the previous month’s revised 0.1% drop (previously reported: -0.4% month-on-month). Meanwhile, the annual average variation in industrial production fell for the tenth consecutive month to 4.4% in June, from 5.2% in May, marking the lowest print since January 2017.

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