Romania: Industrial output records quickest growth since December 2017 in March
Industrial production rose 13.0% year-on-year in March (February: -1.7% yoy). The print marked the best result since December 2017, but was nonetheless flattered by a supportive base effect. The reading reflected a broad-based improvement, with activity in the manufacturing, mining and quarrying and electricity, gas, steam and air conditioning supply sub-sectors all improving in March.
On a seasonally-adjusted monthly basis, factory output rebounded, rising 0.8% in March (February: -0.1% mom). Meanwhile, the trend improved notably, with the annual average variation of industrial production coming in at a one-year high of minus 7.2%, up from February’s minus 9.3% reading.
Lauren Braniff, economist at Oxford Economics, said:
“The annual growth rate was heavily influenced by the low statistical base effect from the lockdown in March last year. We expect the industrial sector will recover partially in 2021 with growth of 8.2%, but supply chain disruptions present downside risks despite strong external confidence indicators.”