The decrease in industrial production continued in May
According to Statistics Estonia, in May 2009 compared to May of the previous year, the production of industrial enterprises decreased 30%. The steep decline in industrial production that had started at the end of the previous year continued in May.
When in December 2008 the decrease in production was 22% and in January 2009 26%, then since February the production decreased about 30% compared to the respective month of the previous year.
The situation in manufacturing was more or less the same as in previous months — the production fell about one third compared to the same month of the previous year. The main reason causing the decline in production was the insufficient demand both in domestic and external markets. The sales in external market fell 37% compared to May of the previous year, the sales in domestic market decreased 32%.
The production decreased in all branches of manufacturing. Compared to May of the previous year, the manufacture of chemical products fell more than a half. The production of most basic chemicals was stopped related to the price decrease in the world market. The manufacture of building materials, machinery and equipment and motor vehicles decreased more than 40%. The manufacture of electronic products, wearing apparel, metal, plastic and paper products, repair of machinery and equipment fell more than 30%. The decline was the smallest (4%) in the manufacture of pharmaceuticals and in the branch holding the largest share, i.e. the production of food products (7%), which is predominantly oriented to the internal market consumption.
In May compared to May of the previous year, the production of electricity decreased 15%. At the same time imports of electricity increased 46%. Most of the electricity was imported from Lithuania. The production of heat decreased 26%.
In May compared to April, industrial production increased 1% according to the seasonally adjusted data.
The volume index and trend of production in manufacturing,
January 2000 – May 2009
(2005 = 100)
Change in volume index of industrial production, May 2009
(percentages)
| Economic activity | Change compared to previous month according to seasonally adjusted dataa | Change compared to corresponding month of previous year | |
| according to unadjusted data | according to working-day adjusted datab | ||
| TOTAL | 1.3 | -31.9 | -30.0 |
| Energy production | -6.8 | -18.3 | -18.3 |
| Mining | 14.5 | -7.8 | -5.7 |
| Manufacturing | 0.7 | -33.5 | -31.6 |
| manufacture of food products | 1.1 | -9.1 | -7.4 |
| manufacture of wood and wood products | 1.3 | -31.4 | -29.4 |
| manufacture of fabricated metal products | 8.6 | -40.1 | -37.7 |
| manufacture of computer, electronic and optical products | -12.8 | -41.1 | -38.6 |
| manufacture of electrical equipment | -0.7 | -28.0 | -25.2 |
| manufacture of chemicals and chemical products | 16.7 | -54.2 | -52.6 |
| manufacture of furniture | -11.5 | -32.1 | -29.7 |
| repair and installation of machinery and equipment | -2.7 | -33.0 | -31.6 |
| manufacture of building materials | 6.1 | -45.1 | -43.9 |
| manufacture of textiles | 3.1 | -19.3 | -14.8 |
aIn 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.
bIn 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.