Analytics, Estonia, Industry, Markets and Companies

A rapid decrease in industrial production, which had begun in the end of the previous year, deepened further in February. When in October-November 2008 the decrease in production was around 15% compared to the corresponding month of the previous year, then in December production decreased 22% and in January of this year 27%.

In February, the production in manufacturing fell 33% compared to the same month of the previous year, this carried the production back to the level of 2003. The main reason causing the decline in production was the insufficient market demand both in domestic and external markets. The fall in sales was about one third both in domestic and external markets. Production decreased in all branches of manufacturing in February. Decline in the branch holding the largest share, i.e. the production of food products, which is predominantly oriented to the internal market consumption, was 11%. The decrease in this branch has been steadily around 5–10% and it was the smallest of the branches of manufacturing also in February. Decline in the production of food products has slightly slowed down due to the stop in the increase of food prices, whereby the producer prices of milk, flour and oil decreased significantly. Production in the manufacture of computer, electronic and optical products, which is predominantly oriented to the external market, decreased 14%. Production in the manufacture of metal products decreased by one fourth. The production of metal constructions, predominantly connected with the domestic construction market, fell 30%. A nearly 40% continuous decline is reported in the production of wood, where the production of sawn timber and all wood products dropped. The production in several branches holding a smaller share decreased even more than 50% – the production of building materials fell by 64% and the production of motor vehicles by 55%.

The volume index and trend of production in manufacturing, January 2000 – February 2009 (2005 = 100)

In February compared to February of the previous year, the production of electricity decreased 5%, the production of heat increased 3%.

In February compared to January, the seasonally adjusted industrial production decreased 4%.

Change in volume index of industrial production, February 2009 (percentages)

^a In case of the seasonally adjusted volume index, the impact of the differing numbers of working days in a month and seasonally recurring factors has been eliminated. It is calculated only in comparison with the previous month.

^b In case of the working-day adjusted volume index, the impact of the differing number of working days in a month has been eliminated. It is calculated only in comparison with the corresponding month of the previous year.