According to a second estimate from the Statistical Institute, industrial production expanded 3.4% YoY in May (April: +4.7% YoY). The May result was the worst reading since November 2021. The reading was largely due to weak manufacturing output. In addition, the production of electricity, gas, steam and air conditioning was contracted.
On a monthly basis, industrial output grew 1.4% on a seasonally adjusted basis in May, rebounding from April’s 1.5% decline. Meanwhile, average annual industrial production growth fell to 4.6% in May (April: +7.7%). This indicates a deteriorating trend in the industrial sector.
Members of the FocusEconomics Consensus forecast committee expect industrial production to rise 6.1% in 2022, unchanged from last month’s forecast. For 2023, the committee expects industrial production to increase by 4.2%.