Updated | Malta’s industrial production decreases between October and November 2014

According to Eurostat, seasonally adjusted industrial production rose by 0.2% in both the euro area and the European Union at large, in November. According to estimates from Eurostat, in October, industrial production grew by 0.3% in both zones.

Industrial production decreased by 0.4% in the euro area and by 0.1% in the European member states when comparing November 2013 and November 2014.

The increase of 0.2% in industrial production in the euro area in November 2014, is due to production of durable consumer goods such as consumer electronics and home appliances, rising by 1.9%, non-durable consumer goods, such as food and clothing rising by 0.5% and intermediate goods such as steel or other raw materials, increasing by 0.3%. Capital goods and energy, on the other hand fell by 0.2% and 0.9% respectively.

Eurostat reported that in the EU as a whole, the increase of 0.2% was due to production of durable consumer goods rising by 1.7%, non-durable consumer goods rising by 0.5% and intermediate goods by 0.4%, while capital goods fell by 0.1% and energy fell by 1.0%.

Statistics show that the highest increases in industrial production were registered in Ireland, Hungary and Croatia, whereas the largest decreases were registered in Lithuania, Latvia and Malta.

Statistics show that the decrease of 0.4% in industrial production in the euro area between November 2013 and the same month in 2014, is due to energy production falling by 4.8%, capital goods falling by 0.9% and intermediate goods decreasing by 0.6%. On the other hand durable consumer goods and non-durable consumer goods rose by 0.4% and 3.2% respectively.

Eurostat said that in the EU, the decrease of 0.1% is due to production of energy and capital goods falling by 4.4% and 0.4% respectively. Intermediate goods remained stable, whereas durable consumer goods rose by 2.4% and non-durable consumer goods rose by 2.5%.

The largest decreases in industrial production were registered in Sweden, the Netherlands, Slovakia and France, and the highest increases were registered in Ireland, Hungary, Estonia and the Czech Republic.

“The Government should address the constantly falling rates of industrial production” PN

The Nationalist Party has expressed concern over the fact that Europe has once again placed our position in the last rung with regard to industrial production.

“Strengthening our country’s industries, particularly the manufacturing industry, which employs around 30,000 people in our country, is crucial for the stable development of the Maltese Economy”, said Shadow Finance Minister, Mario de Marco .

“With the 2.5% fall in industrial production in November, Malta has gone ahead in its downward spiral. With the exception of one month during the year where an increase was registered, these figures are somewhat disconcerting.”

The Nationalist Party questioned what is being done by Malta Enterprise and the Ministry responsible in order to address the reasons why results are so poor and what the difficulties actually are.  The Party also asked what incentives and initiatives are being adopted to address these issues.

“A drop in production could lead factories to reduce their shift hours and overtime, which would eventually lead to a loss of income for employees,”said de Marco.

“Our country needs a clear vision and coherent strategy to know where the industry is heading.  It is on the basis of these clear strategies that schemes and incentives supporting industrial growth can once again be offered.”