BRATISLAVA, January 10, (WEBNOVINY) – The yearly growth pace of Slovak industry practically came to a standstill in November 2011. Net of the influence of working days, industrial output grew a mere 0.4 percent in the eleventh month of last year, based on the latest data released by the Statistics Office of the Slovak Republic. For comparison’s sake, industrial output in October came up by 7.7 percent.
Output from the manufacturing sector ticked up 0.8 percent, while output from supply of electricity, gas, steam and cool air fell 0.4 percent, along with mining and extraction of raw mineral materials (-10.2 percent). Net of seasonal influences, industrial output in November 2011 dropped 2.4 percent from October 2011. Overall output from industry was most significantly influenced by growing output from production of metals and metallic structures except fro machines and equipment (+6.9 percent), production of machines and equipment not classified elsewhere (+9.5 percent), textile, clothes, leather and leatherware (+7.3 percent), production of means of transport (+0.8 percent) and products of rubber, plastics and other non-metallic mineral products (+3.9 percent). Output from production of computer, electronic and optical devices fell by 9.3 percent and basic pharmaceutical products and preparations dwindled 22.3 percent.
The industrial production index (IPI) climbed 7.5 percent y/y in January-November period, with 9.4-percent growth in output from manufacturing sector. Output from supply of electricity, gas, steam and cool air dropped 1.8 percent. Output from mining and extraction of raw mineral materials was 3.3 percent lower.
Analysts were taken aback by the intensity of the industrial slowdown. ING’s Eduard Hagara noted that the mood in industry was just slightly below the long-term average, while the Czech and Hungarian industry brought about rather pleasant surprises. “So, we expected that November’s output from industry could come up by some 5 percent. The slowdown affected a vast majority of sectors, which, too, is a negative signal,” Hagara elucidated. Should growth of industry stop in the coming months, the Slovak economy might slip into recession this year. “The November result poses negative risk to our estimate that industry in 2012 will grow 3 percent. Since industry is always crucial for the overall Slovak economic growth, its potential stagnation amidst weak consumer demand would mean a GDP drop in 2012,” the analyst warned.
SITA