Estonia: In September the industrial production was smaller than a year ago
31/10/2008 - 11:41
According to Statistics Estonia, in September 2008 compared to September of the previous year, the production of industrial enterprises decreased 4%.
In manufacturing, the production fell 3% compared to the previous year. The main reason hindering the increase in production was insufficient market demand. The decrease in the production of manufacturing was mainly influenced by the production of food, wood and building materials. The manufacturing of food was continually hindered by the decrease in consumption resulting from price increase. Although the price increase has decelerated during last months, the prices of food products still increased 12% compared to September of the previous year. The decrease in the production of food was mainly influenced by the decrease in the production of beverages, primarily caused by a higher excise tax which increased in July and by the price increase of raw materials in the world market.
The downward trend continued in the wood manufacturing where the shortage of raw materials and difficulties in the sales both in domestic and external markets continue. The Estonian market is influenced by the decrease in construction, and the external market — by stiff competition. Compared to September of the previous year, 22% less sawn timber and 9% less glue-laminated timber were produced. The largest fall (32%) was in the production of building materials which is directly connected with the decline in the construction market.
Similarly to the previous months, in September the production increased primarily in the export-oriented branches of industry — in the manufacture of metal products, chemical products, and electrical machinery. The production grew also in the manufacture of machinery, radio and communication equipment, precision instruments and motor vehicles, where the share of exports was the biggest. Thus, the share of exports was 97% in the manufacture of radio and communication equipment and 91% in the manufacture of precision instruments.
In September compared to September of the previous year, the production of electricity decreased 5%, the production of heat increased 17%.
In September compared to August, the seasonally adjusted industrial production change was less than 1%.
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