Romanian industrial output growth rebounded in July, following a slowdown in June, as demand for the country’s manufactured goods improved.
Production grew a seasonally adjusted 5 percent from a year earlier, compared with a 3.2 percent gain in June, the Bucharest-based National Statistics Institute said in an e- mailed statement today. It rose 1.2 percent on the month after a decline of 2.2 percent in June.
Output growth in the euro area, which buys more than 70 percent of Romania’s exports including Dacia cars, slowed to 0.2 percent in the second quarter, the worst performance since the region was in recession in 2009. The Balkan nation’s economic recovery weakened in the April-June period to 1.4 percent from 1.7 percent in the first quarter of the year.
Romania’s production of manufactured goods rose an annual 5.6 percent in July, compared with growth of 2.8 percent in June on the year. Mining output fell 3.4 percent from growth of 5.7 percent in the previous month. Electricity and thermal energy output increased 2.7 percent.
“Industry is already weaker and likely to post weak growth in the future as it is mainly driven by external demand,” Nicolaie Alexandru-Chidesciuc, an economist at ING Bank Romania SA wrote in a report yesterday. “We already adjusted for this slower growth in industry, but there are risks the situation can worsen even more.”
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