Industrial output increased by just 4.6% in June and by 6.1% in H1, visibly losing steam against 2006.
The plus registered by industry dwindled during the first half of this year. Production growth slowed down to 6.1% in the first half, from 7.7% in the first 3 months, in line with data released by the National Statistics Office (INS).
Practically, June was the weakest month of this year for the industry, after a modest 2.4% increase registered in April, which was accounted for by the Easter holidays.
Despite the slowdown, industrial output is still registering higher-than-expected growth. For the entire year, the National Prognosis Commission projects a 5.7% advance for production output; a rate that, for now, has exceeded results for six-months. In comparison, industry last year witnessed a 7.1% increase in terms of production, the best result of the past five years.
Industry accounts for approximately 25% of the GDP, so that a slower growth rate in this area (6.1% in the first half from 7.7% in the first quarter) is likely to translate into a weaker growth rate in the overall economy.
In Q1 of this year, the economy expanded by 6%, at a slower than expected rate, because of slower consumption and a weaker performance in terms of budget revenues collection.
As yet, INS has not published data on Q2 and H1 economic growth, with the information to be published in around a month.
However, the weaker industrial figures are likely to be offset by the slight rally of retail and by the steady boom in constructions. Retail sales started rebounding in June (plus 16%), after witnessing a modest evolution in the first half of the year. In the first 6 months of this year, retail posted a 9.6% increase, much weaker than last year's (24%), but above the Q1 rate (4.3%).
Retail accounts for around 12-15% in GDP and points
