The decrease in industrial production slowed down a little
According to Statistics Estonia, in October 2009 compared to October of the previous year, the production of industrial enterprises decreased 21%. In the earlier months of this year, the decrease remained within 30% compared to the same period of the previous year.
As a sharp decline in the industrial production began at the end of the previous year, indicators concerning the production in October have remarkably improved due to comparison with a lower reference base than in case of the previous months of the year.
In October, the total industrial production as well as the industrial production in manufacturing remained at the level of the previous month according to the seasonally adjusted data. From January to April, industrial production declined nearly 4% every month compared to the respective previous month. Since May, the difference compared to the previous month has been in the range of -2% to 2%.
The production in manufacturing fell 22% in October compared to the same month of the previous year. The main reason causing the decline was a continually insufficient demand both on domestic and external markets.
The production decreased in all branches of manufacturing except in the manufacture of beverages, textiles and other transport equipment. The decrease was the smallest in the manufacture of food products (8%), influenced essentially by the decrease in the prices of food products. Since the beginning of the year, the producer prices of milk, flour and oil have decreased significantly. The manufacture of wearing apparel, leather and chemical products, building materials, metal and metal products, electrical equipment, and machinery and equipment fell more than 30%. The manufacture of paper, furniture and motor vehicles as well as the repair of machinery and equipment decreased more than 20%.
In October compared to October of the previous year, the production of electricity decreased 33%, and the production of heat increased 17%. The decrease in electricity production was caused by a partial replacement of own production with imports from Lithuania.
The volume index and trend of production in manufacturing,
January 2000 – October 2009 (2005 = 100)
| 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 | 0.0 | -23.0 | -20.9 |
| Energy production | 6.6 | -19.5 | -19.5 |
| Mining | 9.4 | -8.6 | -7.0 |
| Manufacturing | -0.3 | -24.1 | -21.9 |
| manufacture of food products | -2.2 | -9.8 | -8.3 |
| manufacture of beverages | 11.9 | 16.5 | 19.9 |
| manufacture of wood and wood products | 0.1 | -15.5 | -13.0 |
| manufacture of fabricated metal products | 0.8 | -37.3 | -35.0 |
| manufacture of computer, electronic and optical products | -38.2 | -19.3 | -18.0 |
| manufacture of electrical equipment | -2.9 | -33.6 | -31.2 |
| manufacture of chemicals and chemical products | -0.7 | -40.4 | -38.5 |
| manufacture of furniture | 14.1 | -24.3 | -21.8 |
| manufacture of rubber and plastic products | 1.8 | -16.4 | -13.0 |
| manufacture of building materials | -5.0 | -33.9 | -32.4 |
a In case of the seasonally adjusted volume index, the impact of the differing number of working days in a month and that of the seasonally recurring factors has been eliminated. It is calculated only for comparison with the previous month.
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 for comparison with the corresponding month of the previous year.