Romania\u2019s industrial production index plunged by 4.2% y\/y in August, marking one of the most significant annual declines in the past year and a half and witnessing subdued economic activity in the month. The manufacturing sector\u2019s output contracted by 4.5% y\/y.<\/p>\n
The industrial slowdown hasn\u2019t come as a surprise after Romania\u2019s exports and imports posted marked declines (7.5% y\/y and 3% y\/y, respectively) in August.\u00a0<\/p>\n
The outlook for the manufacturing sector does not look encouraging, as Romania\u2019s Manufacturing PMI index compiled by BCR dropped to 47.3 points in September, marking a 2.7-point negative deviation from the 50-point neutral benchmark and remaining in the contractionary zone for the third consecutive month after the short-lived improvement in April-May.<\/p>\n
The average PMI in the third quarter stands at 47.8, down from 51.2 in the second quarter.<\/p>\n
In the first two months of Q3 (July-August), the industrial output contracted by 1.8% y\/y and by 1.9% y\/y in the manufacturing industries \u2013 at steeper rates compared to Q2, but in line with the overall medium-term industrial activity slowdown.<\/p>\n
The industries that keep performing well are food and beverages, where the output rose by more than 10% compared to the 2021 average level and keeps growing at significant rates (+6.5% y\/y and +4.5 y\/y for the July-August period), but also the oil refining industry, the paper industry and the manufacturing of transport means other than road vehicles.<\/p>\n
The manufacturing of rubber products, metallurgy, and the light industries are, in contrast, losing ground.<\/p>\n