Industrial production decreased continually by nearly a third in March

The rapid decrease in industrial production, which had begun in the end of the previous year, continued in March. When in October-November 2008 the decrease in production was around 15% compared to the respective month of the previous year, then in December production decreased 22%, in January of this year 27%, and in February and March 30%.

There were no significant changes in manufacturing during March. The production in manufacturing fell 33% compared to the same month of the previous year, this carried the production back to the level of 2003. The main reason causing the decline in production was the insufficient demand both in domestic and external markets, whereas the sales fell equally 27% in both domestic and external markets. Production decreased in all branches of manufacturing in March. Decline in the branch holding the largest share, i.e. the production of food products, which is predominantly oriented to the internal market consumption, was 13%. Decline in the production of food products was one of the smallest of all branches of manufacturing also in March. Production in the manufacture of computer, electronic and optical products, which is predominantly oriented to the external market, decreased 13%, too. Production in the manufacture of metal products decreased by one fourth. A nearly 35% continuous decline was reported in the production of wood, where the production of sawn timber and all wood products dropped. The biggest fall in March was in the production of chemical products. As a result of the price drop in the world market, the production of basic chemicals was stopped. About 40% less paints and varnishes and 46% less caulking compounds were produced than at the same time a year ago.

Of all industries, production grew only in energy. In March compared to March of the previous year, the production of electricity increased 18%, primarily due to the export of electricity to Finland and Latvia. The production of heat decreased 6%.

In March compared to February, industrial production decreased 3% according to the seasonally adjusted data.

The volume index and trend of production in manufacturing, January 2000 – March 2009
(2005 = 100)

Change in volume index of industrial production, March 2009
(percentages)

^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 month

^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 month of the previous year.