Manufacturing hit by slowdown

TALLINN - In September 2011, output at industrial enterprises grew 6 percent compared to the same month of the previous year, show data at Statistics Estonia, reports bbn.ee. The slowdown in production was most of all influenced by the manufacturing of electronic products.

If at the beginning of the year production at industrial enterprises grew by around 30 percent, then since May the growth slightly slowed down compared to the same month of the previous year. During previous months the reason for the slowdown was mainly the use of the slowly growing comparison basis, but in September the growth in the manufacture of electronic products slowed down sharply.

In September 2011, manufacturing increased by 7 percent compared to September of the previous year. Export sales influenced the growth in production the most – about 70 percent of all manufacturing was sold on the external market.
In September, production volumes exceeded that of the same month of the previous year in most branches of industry. As before, manufacturing of electronic products influenced the growth in production the most. When during previous months the production in this branch increased two or three times, then in September the growth was only 6 percent. Nearly one fourth of the total production volume of manufacturing was produced in this branch within previous months, but in September the share was 15 percent. The branches of industry also holding bigger shares were the manufacture of wood, food and metal products, where production grew 7 percent, 2 percent and 10 percent, respectively.

With respect to the branches of industry holding smaller shares, production increased more than 10 percent in the manufacture of machinery and equipment, electrical equipment, chemicals and motor vehicles. The production decreased in the manufacture of building materials and petroleum products.
In September 2011, compared to August, the seasonally adjusted total industrial production decreased 11 percent, in manufacturing the decrease was 12 percent.

Compared to September 2010, the production of electricity decreased 1 percent.