Romania\u2019s industrial output contracted by 2.8% q\/q, in seasonally and workday adjusted terms, and by 1.9% y\/y in the first three months (Q1) of the year, according to data published by the statistics office INS.<\/p>\n
The performance of the manufacturing sector was even weaker: it contracted by 3.8% q\/q and 3.3% y\/y. \u00a0<\/p>\n
Romania\u2019s industry thus returns to the long-term downward pattern, after short-lived enhanced activity during the last three quarters of 2025. The outlook for the entire year remains modest, but investments in long-term support hopes for stabilisation and further advance once the war in Ukraine ends, paving the way for more intense economic activity in the region.<\/p>\n
Erste Research continues to expect 2026 to be a year in which a marginal expansion in industrial production is likely to happen after three consecutive years of contraction.<\/p>\n
The BCR Romania Manufacturing PMI recorded a second consecutive month of relative improvement in April, with the headline index rising to 47.5 from 46.6 previously. This indicates a slower pace of contraction compared with the prior month. Except for stocks of purchases, which made a broadly neutral contribution, all other components recorded a positive directional contribution in April. Despite the ongoing conflict in the Middle East, input and output prices showed a slower pace of growth.<\/p>\n