The industrial output index in Romania contracted by 2.5% y\/y, and the rate was slightly steeper (-2.6% y\/y) in the manufacturing segment in the third quarter of the year (Q3), according to data published by the statistics office INS.<\/p>\n
The seasonally-adjusted index diminished by 2.0% q\/q (-2.7% q\/q in the manufacturing segment) after the relatively better performances in Q2 (-1.2% q\/q) and particularly Q1 (+1.1% q\/q).<\/p>\n
A large number of industries, ranging from energy-intensive (metallurgy, rubber, and plastic manufacturing), labour-intensive (light industries), or related to the auto industry (manufacturing of electronic and optic devices) or mining (coal), posted double-digit contraction rates.\u00a0<\/p>\n
There were industries that boasted double-digit growth rates, however: automobile production (to a lesser extent dependent on electric models), wood processing, crude oil refining, and manufacturing of metallic constructions.\u00a0<\/p>\n
The food and beverages industries, relying on domestic consumption, advanced by moderate rates (+6.3% y\/y and +3.7% y\/y), capitalising on stronger domestic consumption but not succeeding in substituting the massive volume of imports.<\/p>\n
By broad category of goods, the manufacturing of durable consumer goods (such as automobiles) was the only segment that gained ground (+2.5% y\/y) in Q3, while all the other segments contracted by between 1.2% y\/y (energy goods) and 5.0% y\/y (capital goods).\u00a0<\/p>\n
Producing 5.0% fewer capital goods at a moment when the government prides itself on record investments best reflects local industry\u2019s weak capacity of serving the local market and thus opening the door to massive imports (+4.9% y\/y in euros, in Q3 compared to only 0.7% y\/y stronger exports in the same period of time).<\/p>\n