Industrial production grew by 1.9% y/y in September, after registering no annual change in August, figures of the statistical office, published on Friday showed. The increase was attributed to the manufacturing sector where output grew by 2.4% y/y. In addition, the decline of output in the utility sector eased down to 3.2% y/y.
Looking at the alternative data breakdown, the production of intermediate goods increased by 1.3% y/y, while that of capital goods increased by 2.9% y/y, which bodes well for exports of high value-added goods. Furthermore, the production of consumer products picked up growth to 2.2% y/y, driven by durables, the output of which rose by 2.1% y/y. On the other hand, the production of non-durable goods eased down to 2.0% y/y.
Regarding Q3, average industrial production growth came in at 2.2% y/y, compared to 3.1% y/y in Q2, meaning the sector’s contribution to growth has likely decreased. Looking ahead, we expect that industrial production growth will likely remain moderate, considering projections for easing demand among trading partners.