Decrease in industrial production in May

According to Statistics Estonia, in May 2008 industrial production decreased compared to April as well as compared to May of the previous year.

In May 2008, the seasonally adjusted industrial production of Estonia fell 5% compared to April.

In comparison with May of the previous year, the industrial production decreased 7%, in manufacturing 5%. The reason of the decline in production was mainly the decrease of domestic consumption. The value index of industrial export sales in total manufacturing increased 7% compared to May of the previous year, however the value index of industrial domestic sales decreased 11%. Although the share of exports in the total manufacturing has been growing continuously and exceeds 60%, the growth of exports could not compensate the fall of domestic sales.

The decrease in manufacturing was mainly influenced by the decrease in the production of food, wood and building materials. The decrease in manufacturing of food is continually affected by price increase and the decrease of consumption resulting from it. In May the producer prices of food rose over 18% compared to May of the previous year, in manufacturing of milk products the increase was 30%. Nevertheless the producer prices of manufacturing of food products remained on the same level compared to April. The production decreased in all food industry branches except the production of meat products. Compared to May of the previous year, the production of building materials fell 30% in connection with a slowdown in construction activities. The downward trend continued in the manufacturing of wood, the production of furniture also decreased.

The growth in May was only in the production of metal products and chemicals mainly due to the increase in exports.

In May 2008 compared to May of the previous year, the production of electricity decreased 24%, the production of heat 8%. The decrease in electricity production was caused by partly replacement of own production with imports. In May about 25% of consumed electricity was imported.

The volume index and trend of production in manufacturing, January 1998 – May 2008
(2000 = 100)

Change in volume index of industrial production, May 2008
(percentage)

Economic activity	Change compared to previous month according to seasonally adjusted data^a	Change compared to corresponding month of previous year
Economic activity		according to unadjusted data	according to working-day adjusted data^b
TOTAL	-4.8	-9.1	-6.7
Energy production	-5.6	-20.6	-20.6
Mining	2.3	-9.3	-6.7
Manufacturing	-5.8	-7.6	-5.0
manufacture of food products and beverages	-0.3	-8.5	-6.8
manufacture of wood and wood products	-2.9	-22.3	-20.2
manufacture of fabricated metal products	-16.7	10.5	14.7
manufacture of electrical machinery	-8.0	-7.6	-4.2
manufacture of building materials	-14.7	-31.3	-29.8
manufacture of chemicals and chemical products	8.7	16.7	19.3
manufacture of furniture; manufacturing not elsewhere classified	0.6	-16.8	-13.8
manufacture of radio, television and communication equipment and apparatus	-9.8	-6.8	-4.7
manufacture of textiles	-1.8	-4.7	-1.6

^a In case of the seasonally adjusted volume index, the impact of the differing numbers of working days in a month and seasonally recurring factors has been eliminated. It is calculated only in comparison with the previous period.
^b In case of the working-day adjusted volume index, the impact of the differing number of working days in a month has been eliminated. It is calculated only in comparison with the corresponding period of the previous year.

For further information:

Lilian Bõkova
Leading Statistician
Industry, Construction and Energy Statistics Service
Statistics Estonia
Tel +372 625 9228

More detailed data have been published in the Statistical Database.