Tuesday, June 8, 2010

Romania Industrial Output Growth Slows in April as Mining Fell

By Irina Savu

June 8 (Bloomberg) -- Romanian industrial output growth slowed in April as mining production dropped and a weaker local currency made imported raw materials more expensive.

Production grew an annual 3 percent in April, rising for a sixth consecutive month, after advancing 5.2 percent in March, the Bucharest-based National Statistics Institute said in an e- mail today. Output rose 0.7 percent on the month.

The leu weakened about 1 percent against the euro and 2.5 percent against the dollar in April, making capital goods imports more expensive for producers charging in lei. Miners and oil drillers also produced less in the year through April.

Production of minerals and oil fell 4.4 percent on the year, partly offsetting a 2.7 percent increase in manufactured goods output and a 12.7 percent increase in electricity generation, the institute said.

Industry grew an annual 4.2 percent in the first quarter, after rising 4 percent in the prior three months. The economic contraction slowed to an annual 2.6 percent at the start of this year from 6.5 percent in the fourth quarter.

The International Monetary Fund, which is leading a 20 billion-euro ($24 billion) bailout, says the economy will emerge from recession at the end of this year, led by industrial and export growth. President Traian Basescu said last month that the economy will resume growth in the third quarter this year.

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