Romania: Industrial production jumps
Industrial production accelerated in December to 12.2% from 9.9% in November in line with confidence reaching a post-GFC high
The non-seasonal adjusted data showed industrial production increasing by 8.2% year-on-year in 2017 versus 1.7% in 2016. In seasonally-adjusted terms, IP jumped 9.2% YoY in 2017 (versus 0.7% YoY advance in 2016) thanks to export orders and expected production. Despite a somewhat weaker expectation component, external demand for Romanian industrial goods appears to be strong in the short-term judging by the composite Ifo index for Germany, which rebounded to all-time high in January. Hence, the robust performance is likely to persist into 2018. Labour market constraints, which are forcing a general push into automation, could also boost productivity.
External backdrop remains supportive
NIS, Bloomberg, ING
The strong performance of the sector was due to the manufacturing segment, which posted a 16.5% advance in December 2017, and 9.9% for the whole year. Mining and utilities expanded in 2017 by 5.5% and 1.5% respectively, versus the previous year.
Broad-based rebound for industry
NIS, ING
Good prospects for the industry sector bode well for our above-consensus 2018 GDP growth forecast of 4.7% versus the 4.1% Bloomberg median.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
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