BRATISLAVA, July 8 (Reuters) - Slovak industrial output fell
by a worse-than-expected 23.9 percent year-on-year in May,
following a revised annual fall of 24.7 percent in April, the
Slovak Statistics Office said on Wednesday.
The global financial crisis has hammered the region's
largely export-oriented economies. Demand for Slovakia's
products, mainly cars and electronics goods, have plummeted in
its biggest trade partner, the euro zone.
It was the eighth monthly fall in a row for Slovak output,
and it mirrored drops across the region. Its neighbour the Czech
Republic showed a 21.7 percent fall in May industrial production
in a flash estimate released at the end of June.
Analysts were hopeful that improving economic indicators in
Germany and announcements of production hikes at major producers
in the euro zone country could lead to better data in June.
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KEY POINTS:
INDUSTRIAL OUTPUT MAY 09 MAY 09 FCAST
pct change yr/yr -23.9 -20.2
- Manufacturing production, which has the strongest weighting in
the index, falls by 26.9 percent on the year in May after a 28.9
percent fall in the previous month.
- Within manufacturing output, car production falls by 42.7
percent from a year ago, compared with a 51.4 percent decline in
April.
- The category of electronics and optical goods, being the only
category showing an increase in May, rises by 43.4 percent in
May, compared with a 41.5 percent rise in the previous month.
- Mining falls by 4.2 percent, after a 7.3 percent decline in
April.
- Production and distribution of electricity, gas and water
is down by 7.7 percent, compared with a rise of 2.6 percent in
April.
- The automotive and electronics industries are among the key
drivers of Slovakia's economy.
COMMENT
JURAJ VALACHY, ANALYST, TATRA BANKA
"It was worse than expected. Improving advance indicators in
the euro zone had provided ground for expectations that the May
year-on-year drop would be less than 20 pct."
"Slovak car makers have announced production boosts, and
improving sentiment in western Europe should, with some delay,
be seen in better figures. The June figures should be better."
MAREK GABRIS, ANALYST, CSOB
"The dynamics of the decline are easing slightly compared
with previous data. But the entire industry sector, except for
computers, electronics and optical production, is still not
doing well. We might approaching the bottom and H2 could be
better."
MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA
"It was slightly worse than market expected."
"We might see an improvement, on the seasonally adjusted
month-on-month basis, later in July, also thanks to planned
production rises at Kia Motors Slovakia and U.S. Steel Kosice."
"The year-on-year improvement could come later in autumn,
but the recovery will only be gradual."
LINKS:
- For further details on May industrial output and other
past data, Reuters 3000 Xtra users can click on the Slovak
Statistics Office's website:
http://wwww.statistics.sk/webdata/english/index2_a.htm
- For LIVE Slovak economic data releases, click on......<ECONSK>
- Schedule of upcoming indicator releases............<SK/ECON09>
- Summary of short-term economic data forecasts......<SK/ECON04>
- Slovak benchmark state bond prices .................<0#SKBMK=>
