Industrial output growth quickened to 5.0% y/y (wda), after decelerating to 1.2% y/y June, data of the stat office (SURS) showed on Tuesday. The increase came on the back of manufacturing production, which offset contraction of mining and utility output. Judging by data on industrial turnover and merchandise trade, manufacturing output was boosted by surging pharmaceutical exports to non-EU countries (likely Switzerland). However, the July surge of exports partly reflects one-off event and thus manufacturing output growth will likely be slower in the coming months.
As far as the breakdown by industrial groupings is concerned, the only growth was recorded in production of capital goods and non-durable ones with the latter supporting the hypotheses that one time production for the Swiss market drove up total output.