Industrial growth edged up to 6.6% y/y (wda) in February, data of the stat office showed on Friday. In seasonally adjusted terms, industrial production rose marginally compared to January, with manufacturing output going up by 0.6% m/m. This is in line with the improvement of manufacturing sentiment during the month.
Production of non-energy intermediate goods continued to rise strongly, underpinned by the overall increase of industrial output. On the other hand, the decline of energy intermediate goods deepened to 2.8% y/y, affected by the low energy prices. Production of capital goods rose by 13.8% y/y, implying strengthening of investment activity. Meanwhile, production of consumer goods grew strongly likely on the back of strengthening consumption. As far as the breakdown by activities is concerned, the overall industrial output growth remained driven by manufacturing, which rose by 8.6% y/y, reporting its strongest increase in the past 12 months.
Looking at the cumulative figures, industrial production rose by 6.6% y/y (wda) with manufacturing output going up by 8.2% y/y. We believe that industrial production will continue to rise solidly in the coming months, supported by strengthening of both domestic and external demand and retained cost-competitiveness of Slovenian companies.