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Industrial production fell by 3.3 percent y-o-y in November

THE INDUSTRIAL Production Index (IPP) in Slovakia went down by 3.3 percent year-on-year in November. The figures are disappointing, according to UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák, the TASR newswire reported.

THE INDUSTRIAL Production Index (IPP) in Slovakia went down by 3.3 percent year-on-year in November. The figures are disappointing, according to UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák, the TASR newswire reported.

“The November figures concerning industry confirmed our fears of a deceleration in the growth of the Slovak economy at the end of the year,” said Koršňák, as quoted by TASR, adding that in line with original expectations, industry in the final quarter of 2014 probably did not contribute to growth in gross domestic product but held it back instead.

The fall was influenced by decreases in manufacturing - 4.2 percent; in mining and quarrying - 2.9 percent; and in supplies of electricity, gas, steam and air-conditioning - 3.7 percent.

The decrease in industrial production was affected mainly by a drop in the production of transport vehicles - 10.7 percent; of electrical devices - 13.9 percent; of computer, electronic and optical products - 7.2 percent; of rubber, plastics and other non-metallic mineral products - 5.9 percent; and of textiles, clothes, leather and leather products - 16.1 percent.

When seasonal factors are taken into consideration, industrial production in November shows a drop by 0.7 percent month-on-month.

According to Home Credit analyst Michal Kozub, the automobile industry had a considerably large negative influence but other industries were also responsible in November.

“Production in electronic devices wasn’t going well, nor was production in machines,” Kozub said, as quoted by TASR. “November was therefore the first month in 2014 to see a decrease in industrial production.”

Koršňák added that it is especially exports that are suffering, influenced partly by Russian-European sanctions. Fluctuating demand both in East and West is also keenly felt.

“It could be possible that demand in Europe will gradually recover in 2015,” said Koršňák, as quoted by TASR. “A weaker euro and low oil price should help, as this in turn should be positively reflected in the functioning of Slovak industry.”

Over the first eleven months of the year, the index was up 3.6 percent y-o-y, which was influenced by boosts in manufacturing - 5.1 percent, and in mining and quarrying - 2.8 percent; and by a drop in supplies of electricity, gas, steam and air-conditioning - 7.1 percent.

Source: TASR

Compiled by Roman Cuprik from press reports
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