Industrial production expanded 5.0% on a seasonally adjusted monthly basis in July, which followed June’s 1.7% increase. The result was the best reading since August 2020. Looking at the release details, the July number was largely driven by faster growth in industrial production. In contrast, mining production decreased.
On a yearly basis, factory output grew 8.9% in July, much higher than June’s 1.5% expansion and the best result since July 2021. However, the average annual industrial production growth fell to 2.0% in July (June: +2.1 %). This indicates a deteriorating trend in the industrial sector.
Members of the FocusEconomics Consensus forecast committee expect industrial production to rise 1.0% in 2022, down 0.8 percentage points from last month’s forecast, and rise 1.5% in 2023.