Page 42 - SE Outlook Regions 2023

2.3.4 Industrial production

Bulgaria's industry has been growing since May 2021 when all
coronavirus-related restrictions were lifted and companies were able to
resume normal operations. It was backed mainly by the good
performance of the manufacturing and utilities sectors.

According to the latest available statistics office data, industrial
production increased by 11% y/y in September, after rising by 16.5% y/y
in August.

Manufacturing production increased 13.8% y/y in September, after
rising by 12.7% y/y in August. Within manufacturing, the biggest y/y
increase was registered for computer and communication equipment,
electric and optical products (up 45.9% y/y) and drinks (up 43.3% y/y) in
September. The manufacture of textiles declined the most in
September, by 10.3% y/y.

Mining output fell by 2.4% y/y, after decreasing by a revised 6% y/y in
August.

Utilities output increased by 4.6% y/y in September, following a revised
51.1% y/y rise in August.

Meanwhile, Bulgaria’s Producer Price Index (PPI) for industry increased
by 41.7% year on year in October, the latest available data. This spike
reflected primarily the soaring prices in the electricity, gas, steam and
air conditioning supply sector, where the PPI rose by 97.8% y/y. There
were smaller, though still substantial, increases for manufacturing
(20.8%) and mining and quarrying (4.2%) as well.

The PPI on the domestic market fell by 8.8% m/m and rose by 55.4%
y/y in October. On the non-domestic market, the PPI dropped by 0.2%
m/m and grew by 19.6% y/y.

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