The State Bureau of Statistics will publish today data on industrial production for June, and macroeconomists expect a decline for the third consecutive month.
Four macroeconomists who participated in the Hina survey estimate that, on average, industrial production in June fell by 3.0 percent compared to the same month last year. All expect a decline between 2.5 and 3.5 percent.
After significant fluctuations at the beginning of the year, industrial production weakened by 0.5 percent in April, while in May it unexpectedly dropped by a sharp 5.3 percent.
Overall, in the first five months of this year, industrial production fell by 0.6 percent.
Barriers to production growth include weak domestic consumption and recession in the eurozone, Croatia’s main foreign trade partner, which is why foreign demand is also weak.
– In June, we can expect a further decline in industrial production. However, the decline in finished goods inventories on a year-on-year basis, especially in the food and beverage segment, indicates the possibility of a somewhat milder decline in production before the start of the central tourist season – notes one of the macroeconomists in the Hina survey.
