Croatia's industrial production increased by 1.2% in July 2016 compared with July 2015, growing for 18 straight months, the National Bureau of Statistics (DZS) said on Friday.
According to working day adjusted data, industrial production fell by 0.5% compared with June 2016, but rose by 1.2% year on year.
The growth was slower than in June when industrial output increased by 4.1% year on year. It was the 18th month in a row that industrial production had been growing annually, which has not been recorded since 2007, two years before the six-year-long recession.
Year on year, energy production increased the most, by 7.3%, followed by production of non-durable consumer goods which went up by 3.2%. Production of intermediate goods rose by 1.1%, production of durable consumer goods dropped by 9.5% and that of capital goods fell by 2.8%.
Compared with June 2016, production of capital goods shrank by 8.9% and of durable consumer goods by 4.4%.
In the first seven months of the year industrial production increased by 4.6% compared with the same period of 2015.
The positive trends are probably due to the recovery of foreign demand in countries that are Croatia's main trading partners, as well as a drop in stocks of industrial products last year, analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.
They said that particularly encouraging was the fact that the highest annual growth rate was generated by capital goods which, despite the annual drop of 2.8% in July, grew by 8.2% in the first seven months of 2016 compared with the same period of 2015.
Since we expect the favourable trends in foreign demand to continue, we expect continued growth of industrial production in the rest of the year, which will eventually make a positive contribution to GDP growth, RBA analysts concluded.