PRAGUE, Oct 8 (Reuters) - Slovak industrial output rose by a
larger than expected 16.3 percent year-on-year in August, the
Slovak Statistics Office said on Friday, the tenth monthly rise
in a row.
Annual growth in July was 16.8 percent.
Manufacturing production, which has the biggest weighting in
the index, rose 14.7 percent after a 21.5 percent July increase.
Industrial output rose by 2.2 percent month-on-month in
August, on a seasonally adjusted basis.
The small euro zone economy was badly hit by the global
downturn last year as European demand for its key exports, such
as cars and electronics, dried up. The global recovery is now
fuelling the rebound.
Production of computer, electronic and optical products rose
by 14.5 percent on the year in August after a revised 57.5
percent jump in July.
The 63 billion euro economy contracted by 4.7 percent in
2009, the recession curbing state revenues and increasing
government borrowing needs. Slovakia expects to return to growth
this year.
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KEY POINTS:
INDUSTRIAL OUTPUT AUG 10 AUG 10 FCAST
pct change yr/yr +16.3 +12.5
(for the full Aug table please see ..... []
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COMMENTARY:
EDUARD HAGARA, SENIOR ANLAYST, ING BANK
"The figure was not a surprise after the positive German
figures."
"For the rest of the year, we expect the annual dynamics
will decline and one reason is the positive base effect will
fade. Also, the German economy is expected to slow down."
MICHAL MUSAK, ANALYST, SLOVENSKA SPORITELNA
"It was slightly better than expected, this is sort of
compensation for July which was worse than expected."
"Industry is the part of the economy that has recovered most
and is driving the economy this year; so far, for example,
retail sales have not rebounded. Industry is now close to peak
levels in 2008."
"The growth rate will probably slow down (ahead), but this
is because of base effects. In general, the pace of growth seems
good. From September, Volkswagen started full production, so
this should help the figures."
"For next year, this will depend on Germany and the European
economy."
BORIS FOJDIK, ANALYST, TATRA BANK
"In the coming months, the stronger base from last year will
push down growth. Production itself will stay at the same
level."
INDUSTRIAL OUTPUT:
- Within manufacturing output, car production was up 24.2
percent from a year ago after a revised 48.1 percent rise in
July.
- Production of machinery and equipment -- not classified
elsewhere -- rose by 61.0 percent, following a 50.7 percent
increase in July.
- Mining dipped by 0.1 percent, after a 7.1 percent drop in
July.
- Production and distribution of electricity, gas and water
was up 27.4 percent, compared with a rise of 0.3 percent in
July.
LINKS:
- For further details on August industrial output and other
past data, Reuters 3000 Xtra users can click on the Slovak
Statistics Office's website:
http://wwww.statistics.sk/webdata/english/index2_a.htm
- For LIVE Slovak economic data releases, click on......<ECONSK>
- Schedule of upcoming indicator releases............<SK/ECON09>
- Summary of short-term economic data forecasts......<SK/ECON04>
- Slovak benchmark state bond prices .................<0#SKBMK=>
