Romania's industrial production index decreased by 2.3% in January compared to the same month of 2020, the statistics office INS announced. However, the country's industry performed better than this might imply: the core manufacturing industries advanced on average by 1.6% in seasonally adjusted terms from December (month-on-month) and reached a new post-crisis high.

The primary industry (mining and quarrying) was indeed hurt deeper by the asymmetric crisis, and its recovery is still uncertain until the secondary industry recovers fully and sustainably. Therefore, the mining and quarrying industry's output lagged by 13.7% in January compared to the same month of 2020.

Meanwhile, the core manufacturing industries posted a milder 2% year-on-year contraction. Compared to the 2.6% yoy growth in December, this evolution might indicate a deterioration - but it may also be interpreted as reflecting the unstable and volatile nature of post-crisis recovery under a variable situation in the health sector and still relevant issues related to the supply chain.

A good example is the automobile industry, which is hit by the microchip shortage: the production of transport means contracted by 10% yoy in January and has faced through entire first quarter a problem related to the microchip crisis.

While light industries are still operating at low capacity, other industries (chemicals, electronics, furniture, metallurgy) have fully recovered and boast positive annual growth rates.

iulian@romania-insider.com

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