Industrial output dips for 14th month

Greece’s industrial output fell 11.4 percent year-on-year in June, contracting for the 14th consecutive month, with economists expecting signs of stabilization to appear in the third quarter of 2009. The National Statistical Service (NSS) said yesterday that in the first six months of the year, industrial production contracted 9.5 percent year-on-year versus a 3 percent decline during the same period in 2008. «The decline in industrial output accelerated in June, showing that despite an improvement seen in leading indicators, Greek industrial production remains vulnerable to weaker external demand and higher inventory levels compared to the rest of the eurozone,» National Bank economist Nikos Magginas told Reuters. «Exposure of Greek manufacturing to construction and chemicals is likely to delay the sector’s recovery compared to other euro area countries. We expect to see some signs of stabilization in the third quarter,» he added. Meanwhile, data released in Turkey yesterday showed that industrial production in the neighboring country fell 9.7 percent year-on-year in June but the rate of decline fell sharply from a month earlier. It was the 11th consecutive month that industry output in Turkey contracted year-on-year. In May, industrial output dropped 17.4 percent year-on-year.