Romania’s industrial figures confirm subdued economic activity in August
<p>Romania’s industrial production index plunged by 4.2% y/y in August, marking one of the most significant annual declines in the past year and a half and witnessing subdued economic activity in the month. The manufacturing sector’s output contracted by 4.5% y/y.</p>

<p>The industrial slowdown hasn’t come as a surprise after Romania’s exports and imports posted marked declines (7.5% y/y and 3% y/y, respectively) in August.&nbsp;</p>

<p>The outlook for the manufacturing sector does not look encouraging, as Romania’s Manufacturing PMI index compiled by BCR dropped to 47.3 points in September, marking a 2.7-point negative deviation from the 50-point neutral benchmark and remaining in the contractionary zone for the third consecutive month after the short-lived improvement in April-May.</p>

<p>The average PMI in the third quarter stands at 47.8, down from 51.2 in the second quarter.</p>

<p>In the first two months of Q3 (July-August), the industrial output contracted by 1.8% y/y and by 1.9% y/y in the manufacturing industries – at steeper rates compared to Q2, but in line with the overall medium-term industrial activity slowdown.</p>

<p>The industries that keep performing well are food and beverages, where the output rose by more than 10% compared to the 2021 average level and keeps growing at significant rates (+6.5% y/y and +4.5 y/y for the July-August period), but also the oil refining industry, the paper industry and the manufacturing of transport means other than road vehicles.</p>

<p>The manufacturing of rubber products, metallurgy, and the light industries are, in contrast, losing ground.</p>

<p><em>iulian@romania-insider.com</em></p>

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