Romania’s industrial recovery paused in November

Romania’s industrial recovery paused in November
By bne IntelliNews January 14, 2021

Romania's industrial production index, seasonally adjusted, edged down by 0.6% in November, compared to October, after six months of recovery, during which it made up for most of the deep plunge seen in March.

As of October, the index was only 2.7% behind the pre-crisis peak reached in February, but the recovery paused in November when the index slipped to -3.3% versus February.

The decline in November was more significant in the core manufacturing sector, where the seasonally adjusted index contracted by 1.7% compared to October. Still, the lag versus February is in line with the industry-wide 3.3% average.

In annual terms, the gross industrial production index fell deeper into negative territory (-3.3% y/y) in November after it recorded the first post-crisis positive annual performance in September (+0.2% y/y).

For the whole January-November period, Romania's industrial output contracted by 10.2% y/y, with a slightly steeper (11.3%) decline in the manufacturing sector.

Light industry plunged by roughly 30% year-on-year, while oil processing and automobile production dropped by nearly 20%.

However, some industries (chemical products, pharmaceuticals) posted positive growth rates in low single-digits. Tobacco processing also performed well.