The growth in industry was replaced by decrease during 2008
The decrease in the industrial production remained around 5% from March till October. During the last months of the year a rapid decrease occurred — in October the industrial production fell 12%, in November 17% and in December 21%.
In manufacturing, the production decreased 5% in 2008 compared to 2007. During the first three quarters the decrease in manufacturing was mainly affected by price increase and insufficient demand in domestic market resulting from it. In the last quarter the decrease of demand in the external market resulting from world business depression had become obvious. The decrease in the production of manufacturing was mainly influenced by the production of branches holding the largest share, such as food, wood and building materials. The largest fall — 28% — was in the production of building materials, which is directly connected with the decline in the domestic construction market. The difficulties in the sales both in domestic and external markets affected continually wood manufacturing — the production of wood fell 19%. The decrease in the production of food was mainly influenced by the decrease in the production of beverages, primarily caused by a higher excise tax which increased in July, and by the price increase of raw materials in the world market. The production of food decreased 8%.
In 2008 compared to 2007, the production increased in the manufacture of metal products, chemical products, electrical machinery, radio- and communication equipment mainly due to the increase of export orders at the beginning of the year. The decrease of export orders at the end of the year turned to decline the branches of industry growing heretofore.
In December compared to the previous year, the production decreased in all branches of manufacturing. In December 2008 compared to November, the seasonally adjusted industrial production decreased 2%.
In 2008 compared to 2007, the production of electricity decreased 13%, the production of heat — 8%. The decrease in electricity production was caused by a partial replacement of own production with the imports of electricity. In December compared to December of the previous year, the production of electricity decreased 18%, the production of heat — 5%.
The volume index and trend of production in manufacturing,
January 1998 – December 2008 (2000 = 100)
Change in volume index of industrial production, 2008 and December 2008
(percentage)
| Economic activity | 2008 compared to 2007 | December 2008 | ||
| 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 | -6.5 | -2.4 | -16.7 | -20.7 |
| Energy production | -11.7 | 1.6 | -14.2 | -14.2 |
| Mining | -12.8 | -3.1 | -13.0 | -17.1 |
| Manufacturing | -5.3 | -3.7 | -17.5 | -21.8 |
| manufacture of food products and beverages | -7.6 | 0.5 | -7.7 | -10.7 |
| manufacture of wood and wood products | -18.6 | -14.1 | -30.8 | -34.6 |
| manufacture of fabricated metal products | 10.2 | -13.6 | -25.6 | -30.6 |
| manufacture of electrical machinery | 11.6 | -4.4 | -4.3 | -11.3 |
| manufacture of building materials | -28.1 | -10.8 | -41.0 | -43.5 |
| manufacture of chemicals and chemical products | 11.7 | -30.6 | -26.1 | -30.2 |
| manufacture of furniture; manufacturing not elsewhere classified | -11.4 | 7.5 | -6.5 | -13.3 |
| manufacture of radio, television and communication equipment and apparatus | 3.9 | 9.5 | 1.8 | -2.7 |
| manufacture of textiles | -9.4 | 9.1 | -18.4 | -22.2 |
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.