In June the industrial production was smaller than a year ago

According to Statistics Estonia, in June 2008 industrial production increased compared to May but decreased compared to June of the previous year.

In June, the seasonally adjusted industrial production of Estonia increased 2% compared to May.

In comparison with June of the previous year, industrial production decreased 5%. The decrease in production was essentially affected by a continuous decrease in electricity production — compared to June of the previous year, the production of electricity decreased 28%. As before, the decrease in electricity production was caused by a partial replacement of own production with the imports of electricity — in June nearly one third of consumed electricity was imported. The production of heat increased 2% compared to June of the previous year.

In manufacturing, production decreased 2%. The main reason for this was the decrease in orders. According to the information of Estonian Institute of Economic Research, more than half of enterprises mentioned insufficient demand as the key factor hindering the growth. The growth in production is mainly hampered by the decrease in the internal market demand. In June compared to the same period of the previous year, the industrial domestic sales of enterprises decreased 5%, however, industrial export sales increased 3%. 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. In June, the producer prices of food products rose more than 18% compared to June of the previous year, in the manufacturing of milk products the increase was 28%. Nevertheless, the producer prices of milk products fell compared to May. Due to the decrease in construction volumes, the production of building materials is continually in a declining trend — the production of building materials decreased 24% compared to the previous year. The downward trend continued in the manufacturing of wood, the production of furniture also decreased.

In June, production increased primarily in the export-oriented branches of industry — in the manufacture of metal products, chemical products, electrical machinery, radio and communication equipment and apparatus.

The volume index and trend of production in manufacturing, January 1998 – June 2008
(2000 = 100)

 

 

 

Change in volume index of industrial producti on, June 2008
(percentage)

Economic activity

Change compared
to previous month
according to
seasonally adjusted
dataa

Change compared to corresponding
month of previous year

according to
unadjusted data

according to
working-day
adjusted datab

TOTAL

1.6

-9.5

-4.7

Energy production

-3.5

-23.4

-23.4

Mining

-6.3

-18.2

-13.4

Manufacturing

2.8

-7.4

-2.2

manufacture of food products and beverages

2.6

-6.9

-3.7

manufacture of wood and wood products

-4.6

-29.1

-25.0

manufacture of fabricated metal products

15.3

24.5

33.8

manufacture of electrical machinery

6.2

1.3

8.7

manufacture of building materials

1.1

-27.3

-24.0

manufacture of chemicals and chemical products

-7.0

-1.2

3.4

manufacture of furniture; manufacturing not elsewhere classified

-2.7

-24.3

-18.7

manufacture of radio, television and communication equipment and apparatus

19.7

12.1

17.2

manufacture of textiles

-1.5

-12.1

-6.0

a In case of the seasonally adjusted volume index, the impact of the differing numbers of working days in a month and seasonally recurring factors has been eliminated. It is calculated only in comparison with the previous period.
b In case of the working-day adjusted volume index, the impact of the differing number of working days in a month has been eliminated. It is calculated only in comparison with the corresponding period of the previous year.

Source: Statistics Estonia

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