Industrial output decline slows down in January
The spell of bad weather at the end of last year and the beginning of this year not only led to inflated consumer prices; it also wreaked havoc on the country’s industrial production in January, provisional figures released by the National Statistics Service (EYSE) yesterday showed. Industrial output showed a 0.8-percent year-on-year decline in the first month of the year, as the cold freeze stopped raw materials from reaching factories and kept workers in their homes. Despite the inauspicious start to the year, economists said industrial production is expected to improve in the months ahead, in line with the eurozone trend and on the back of continued consumer spending and ongoing infrastructure projects. According to EYSE’s statistics, the contraction in industrial output was due to sharp falls in office equipment and computer production, down by a massive 88.2 percent, transportation output and consumer electronic goods output, down by 62.6 percent and 50.6 percent respectively. Other sectors, namely clothing, machinery and furniture, also posted significant declines in production. This took the manufacturing index down by 4.6 percent. The drop in industrial production in January, however, was smaller than the 4-percent fall recorded the previous month. EFG Eurobank Ergasias economist Platon Monokroussos said industrial output is projected to pick up in the coming months, a trend «in line with that in the eurozone.» While industrial production in the region continues to «remain firmly in negative territory, there has been an improvement on a monthly basis as companies stock up on depleting inventories,» he said. The outlook in Greece is particularly favorable, as several forward indicators of economic activity have shown. The purchasing managers index in March rose to 53.7 from 52.3 in February, the 34th consecutive increase. Purchasing managers said manufacturing was thriving on the back of higher production, new orders, procurement and employment. Industrial think-tank IOBE’s positive manufacturing indicator is also lending support to optimism over future output, Monokroussos said. With investment spending expected to continue its buoyant course and infrastructure projects unfolding over the next two years as well as EU-funded works taking shape, Greek industrial production should pick up speed for some time to come, he said. «Industrial output is accelerating ahead,» Monokroussos said. Industrial think-tank IOBE’s positive manufacturing indicator is also lending support to optimism over future output, Monokroussos said.
