The aggregate value of new orders received by Romania’s manufacturing companies declined by 5.6% y\/y in May and by 3.6% y\/y in the first five months of 2026, according to data published by the National Institute of Statistics (INS). Manufacturing turnover also weakened, falling by 1.3% y\/y in May and by 1.7% y\/y in January-May.<\/p>\n
The deterioration came as industrial producer price inflation accelerated sharply. Overall industrial producer prices rose by 12.0% y\/y in May, up from around 4%-5% before February, when crude oil prices surged following the escalation of the conflict in the Middle East. Producer prices for manufactured goods increased by 8.9% y\/y.<\/p>\n
Adjusted for inflation, both new orders and turnover recorded substantially steeper declines in real terms.<\/p>\n
The sharper contraction in new orders compared with turnover also suggests that the downturn in manufacturing activity has yet to bottom out, as new orders typically lead future production.<\/p>\n
The manufacturing output volume index fell by 6.0% y\/y in April-May, accelerating from a 3.4% decline in the first quarter and a 1.0% contraction in the fourth quarter of 2025.<\/p>\n
The continued deterioration raises the risk that Romania’s industrial sector will remain in contraction throughout 2026. In its May forecast, the National Commission for Strategy and Prognosis (CNP) projected a 0.5% decline in overall industrial output this year, following a 0.1% decrease in 2025.<\/p>\n
The CNP expects industrial production to return to growth of 1.7% in 2027. However, the outlook remains uncertain amid continued volatility across European manufacturing, where weak external demand, elevated energy costs and geopolitical tensions continue to weigh on industrial activity.<\/p>\n