Decrease in industrial production

According to Statistics Estonia, in June 2009 compared to June of the previous year, the production of industrial enterprises decreased 30%. The steep decline in industrial production that had started at the end of the previous year continued in June.

The decrease in production was 22% in December 2008 and 26% in January 2009, but since February the decrease in production has been within the limits of 30% compared to the same month of the previous year.

In June, the situation in manufacturing was more or less the same as in previous months — the production fell steadily about one third compared to the same month of the previous year. The main reason causing the decline was insufficient demand both in domestic and external markets.

The production decreased in all branches of manufacturing except the manufacture of other transport (shipbuilding), where the production grew 44%. Due to a small share of this branch, the growth in shipbuilding did not affect the production of all manufacturing. Compared to June of the previous year, the manufacture of metals and metal products fell more than a half. The manufacture of building materials, chemical products, paper, machinery and equipment and motor vehicles decreased more than 40%. The manufacture of electronic products, wearing apparel, furniture and refined petroleum products fell more than 30%. The decline was the smallest (6%) in the manufacture of pharmaceuticals and in the branch holding the largest share, i.e. the production of food products which is predominantly oriented to the internal market consumption — in this branch the decline in production was 8%.

In June compared to June of the previous year, the production of electricity increased 21% mainly due to the increase of exports. Most of electricity was exported to Latvia. The production of heat decreased 13%.

In June compared to May, industrial production did not changed significantly according to the seasonally adjusted data. Growth in the production of electricity helped to maintain the level of previous month, whereas the production of manufacturing decreased about 1% during the month. From January to April, the decrease in industrial production remained within 4% compared to the previous month, in May production increased 2%.

The volume index and trend of production in manufacturing,
January 2000 – June 2009
(2005 = 100)

Read more here: Statistics Estonia