In June, the domestic industrial production has been at its lowest level in the past five months, getting closer to two points from zero growth, which has fueled concerns on the economic growth overall, reads an Industry Barometer conducted by IRSOP and SNSPA’s Management Faculty.
According to the June barometer, orders for export have contracted and the domestic demand has increasingly declined, which will impact on the future activity. On top of all, the optimism of the managers has reached its lowest level in the past 10 months.
The production volume has decreased to 52 points from 58 points registered in May, which is a signal the industry is getting closer to a contraction (below 50) which could affect the entire economy. Stocks are also in contraction- 46 points as against 47 in May.
Orders for exports have seen a dramatic fall by 12 points, from 57 to 45, which means a difficult situation in the Euro zone, which is the main destination of the Romanian exports. Raw material imports have also shrunk over the lack of orders.
The number of employees is also in contraction to 46 points compared to 45 in May and 48 in April, while production costs have slightly, but steadily decreased, from a peak of 75 points in January to 63 points last month.
The IRSOP&SNSPA barometer has been conducted on 300 industrial companies during July 19-24 and has probed into what managers report on the production, orders, stocks, hiring in their companies.
The previous Industry Barometer released at the end if January this year also warned that industry had been weaker in the past three months of 2018 in Romania, while production costs has been highly up.