The decrease in the industrial production compared to the corresponding month of the previous year, which had begun in March 2008, remained around 5% till September. In October the industrial production decreased to the lowest level of the year.
In manufacturing, the production fell 10% compared to the previous year. The main reason causing the decline in the production was the insufficient market demand. The decrease in the production of manufacturing was mainly influenced by the production of food, wood and building materials. The largest fall — by about one third, was in the production of building materials which is directly connected with the decline in the domestic construction market. About a third less prefabricated structural components for civil engineering and 36% less concrete mix were produced. The difficulties in the sales both in domestic and external markets affected continually the wood manufacturing. Compared to October of the previous year, 24% less sawn timber was produced. The decrease in the production of food was mainly influenced by the decrease in the production of beverages, primarily caused by a higher excise tax which increased in July and by the price increase of raw materials in the world market. The price increase of food industry has decelerated during last months. Compared to the 20% growth at the beginning of the year, in October the price increase of food products was less than 10% for the first time.
Similarly to the previous months, in October the production increased primarily in the export-oriented branches of industry — in the manufacture of metal products, chemical products, and electrical machinery. The share of exports in these branches was 61, 83 and 82%, respectively.
In October compared to October of the previous year, the production of electricity decreased 11%, the production of heat — 14%. The decrease in electricity production was caused by a partial replacement of own production with the imports of electricity.
In October compared to September, the seasonally adjusted industrial production decreased 5%.
The volume index and trend of production in manufacturing, January 1998 – October 2008
(2000 = 100)
Change in volume index of industrial production, October 2008
|Economic activity || |
to previous month
|Change compared to corresponding |
month of previous year
|according to unadjusted data ||according to working-day |
|TOTAL ||-5.0 ||-11.0 ||-11.0 |
|Energy production ||-13.5 ||-11.9 ||-11.9 |
|Mining ||-2.5 ||-23.3 ||-23.3 |
|Manufacturing ||-4.6 ||-10.2 ||-10.2 |
|manufacture of food products and beverages ||-1.5 ||-14.5 ||-14.7 |
|manufacture of wood and wood products ||-4.4 ||-21.6 ||-21.6 |
|manufacture of fabricated metal products ||-7.2 ||4.2 ||4.2 |
|manufacture of electrical machinery ||1.8 ||19.2 ||19.2 |
|manufacture of building materials ||-3.3 ||-31.9 ||-31.9 |
|manufacture of chemicals and chemical products ||-7.2 ||13.7 ||13.7 |
|manufacture of furniture; manufacturing not elsewhere classified ||-2.4 ||-9.8 ||-9.8 |
|manufacture of radio, television and communication equipment and apparatus ||-14.0 ||-2.5 ||-2.5 |
|manufacture of textiles ||-8.6 ||-22.9 ||-23.4 |
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.