August 7, 2014

In June, industrial production rose 0.3% over the previous month in seasonally-adjusted terms, which contrasted the revised 0.6% drop recorded in May (previously reported: -0.7% month-on-month). June’s increase fell short of the markets’ expectations of a 0.6% increase.



Manufacturing output rebounded from May’s 1.3% drop to a 0.3% expansion in June. Manufacturing’s rebound also came in below market expectations of a 0.6% rise. Mining and quarrying dropped 1.0% over the previous month, which contrasted the 1.7% expansion recorded in May. Oil and gas output dropped 1.3% in June, which also contrasted the 2.1% rise recorded in May. Electricity, gas, steam and air conditioning supply decelerated from the 2.8% increase seen in May to a 0.9% expansion. Finally, water, sewerage and waste management fell 2.5% in June, which was in line with the drop tallied in May.



In annual terms, industrial production rose 1.2% in June, which was below May’s 2.3% increase and marked the softest annual expansion in ten months. Annual average growth was stable at May’s 1.6% in June, which continued to represent the highest level since July 2011.

FocusEconomics Consensus Forecast panelists project that industrial production will increase 2.4% in 2014, which is up 0.3 percentage points over the previous month’s forecast. For 2015, the panel expects that industrial production will increase 1.6%.