Estonia's industrial output climbs 4.5% in August, driven by energy sector
Estonia's industrial production rose 4.5% year on year in August, largely thanks to a sharp surge in energy output, while manufacturing growth remained modest.
Statistics Estonia has reported that the country's industrial production grew by 4.5% in August compared with the same month last year, measured at constant prices. All three industrial sectors recorded growth, but energy production stood out with an increase of 56.9%.
Mining output rose by 25.3%, while manufacturing — the largest sector — grew by just 1.2%. Lead analyst Riin Kadarik noted that, as in July, overall manufacturing output kept expanding in August despite declines in the two biggest manufacturing activities.
Wood and food production slip
Wood production fell by 0.6%, while food production dropped 3.8%, largely due to lower output of dairy products. Production of computers, electronic and optical products also declined, by 2.1%.
The biggest positive contributor to manufacturing growth was electrical equipment production, up 12.2%, supported by increased output of electric motors, generators and transformers. Notable increases were also seen in machinery and equipment not elsewhere classified (up 19.7%), coke and refined petroleum products (20.4%), fabricated metal products (6.9%), and motor vehicles, trailers and semi-trailers (19.1%).
Unlike in July, when production volumes rose in two-thirds of manufacturing activities, in August growth was recorded in fewer than half of them.
Exports and energy gains
In August, 66.2% of total manufacturing output was sold abroad, slightly more than in July. At current prices, overall manufacturing sales rose 6.4% year on year, with domestic sales up 3.7% and export sales up 8%.
Within the energy sector, electricity production increased by 43.3% and heat production by 46.5%. Kadarik explained that the rise in electricity output was driven by a significant increase in wind and solar generation, along with higher electricity exports and the fact that production levels in August last year had been unusually low. The growth in mining was attributed to increased extraction of oil shale, stone, sand and clay.
