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April 13, 2017 www.intellinews.com I Page 8
Slovakia’s industrial output recovery fades in February
bne IntelliNews
Slovak industry saw its recent recovery fade in February, with output slowing to just 2.6% y/y, the statistics office reported on April 11.
The reading suggests a worrying return to slug- gishness early in the year. Growth of 7.6% in January had signalled a welcome acceleration in activity as the year kicked off, following an er- ratic second half to 2016. A 3% gain in December represented something of a stabilisation following a deep drop in the summer, which limited output to 3.3% for the full year. The data illustrated just how difficult a year it was for Slovak industry, with export demand out of the Eurozone – the dominant driver of the economy – patchy, and a deep lull in investment crippling domestic demand. The indus
trial sector expanded a robust 6.9% in 2015.
Indicators across the Visegrad region have pointed to a much stronger start to 2017, as activity and confidence in the Eurozone has risen strongly. In that context, the February data – although not adjusted for a shorter month this year – is clearly disappointing. In seasonally adjusted terms, output dropped 0.9% m/m.
The downturn in activity looks to be the result of slowing growth in the vital manufacturing sector. By far the biggest contributor to the Slovak economy, the sector managed expansion of just 2.2% y/y in February, a full 4.1pp slower than in the previous month.