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Barometer: 60-point growth industrial production volume în September 2016
Romania's industry bounced back in September 2016, with the industrial production volume going up to 60 points, from 51 points in August 2016, according to findings in Romania's Industry Barometer drawn up by the IRSOP Romanian Polling Institute and the Management Faculty of the National School of Political and Administrative Studies of Bucharest (SNSPA) released on Wednesday.
The 60-point industrial production volume is higher than the 57-point median of the last 23 months.
"After declining continually for almost five months in a row, industrial production bounced back in September. The production volume was up at 60 points, as against 51 one month previously, standing now past the 57-point median of the last 23 months. Industry in September 2016 got 10 points away from the upper limit of the contraction zone. Seasonality was one of the forces behind the decline. Industrial output in all European countries drops in summertime, because producers take a vacation and some close down their production facilities. The pattern of industrial activity in Romania over the past two years shows contraction between May and August. Nevertheless, the summertime drop this year was more brutal than the year before. Seasonality added up to difficulties on the global and European markets that witnessed oversupply, prices plummeting for raw materials and inexpensive exports coming from competing Asian economies," shows the barometer.
As far as the forecasts throughout the year are concerned, the barometer shows companies are contemplating hiring new workforce, after four months of firing people.
"The hiring indicator increased from 47 in August, to 52 in September. One explanation could be a higher volume of current business or prospect for keeping up the pace of business orders at least at current levels. With all the reinvigoration signs, business managers are skeptical nonetheless. The hope for future business was up just one point, from 54 in August, to 55 in September, four points below the average of the last 23 months," shows the IRSOP-SNSPA barometer.
The IRSOP-SNSPA Romania's Industry Barometer comprised a sample of 304 representative companies out of a total of 15,2000 industrial companies with more than nine employees operating in Romania, which together generate nearly 95 percent of the total industrial turnover.
Data were collected in direct interviews with corporate managers, October 19-24, 2016.