Analysts: Energy Pulled Up Slovak Industrial Output in September

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(Stock photo by TASR)

Bratislava, November 10 (TASR) – Industrial production in Slovakia recorded year-on-year growth of 2.3 percent in September 2017, influenced primarily by growth of 9.7 percent in electricity, gas, steam and air-conditioning supplies and of 1.8 percent in industrial manufacturing, the Statistics Office announced on Friday.

Meanwhile, a contraction of 6.6 percent was recorded in mining and quarrying.
After seasonal adjustments, industrial production shrank by 0.9 percent month-on-month in September.

Between January and September, industrial production increased by 4.2 percent year-on-year, influenced by increases in electricity, gas, steam and air-conditioning supplies by 7.3 percent and in industrial manufacturing by 4 percent, while a drop of 1.5 percent was seen in mining and quarrying.

Industrial output in Slovakia in September was pulled up mainly by energy, while the processing industry saw only a 1.8-percent increase year-on-year, UniCredit Bank Czech Republic and Slovakia analyst Lubomir Korsnak commented later in the day.

Several sectors oriented on exports performed rather disappointingly in September, with output after seasonal adjustments being relatively poor in producing consumer electronics, electric devices and machines, said the analyst.

“However, considering an improvement in mood as reported by several companies from the electronic industry, we assume that the September production drop should only be of a short-term nature,” said Korsnak.

Meanwhile, the automotive industry grew moderately month-on-month for a second consecutive month, but this wasn’t enough to put the sector back into the black on the yearly basis, said Korsnak, pointing to a contraction in the sector of 1.8 percent on the year.

“The mood in Europe’s industry, as well as consumer trust in Europe, remain relatively strong, with these factors expected to have positive effects on the condition of the Slovak industry. We estimate, therefore, that industry should keep its growing trajectory in the year end, with dynamics of yearly growth due to be close to 5 percent,” said Korsnak. He added that the automotive industry with the introduction of new production should moderately accelerate the country’s output in the next few months, while some companies from the processing industry will have to cope with a lack of skilled labour force, rather than with too few orders.

Meanwhile, Tatrabanka analyst Boris Fojtik pointed to the effect of two public holidays in September, adding that certain car models produced in Slovakia are becoming outdated, while carmakers in these months have been investing in preparations for launching production of new models.