Growth in industrial output at a standstill in February

According to the index per working day of Statistics Finland, industrial output fell by 0.6 per cent in the year to February, its first decline for four years.

The fall in output would have been even steeper if the exceptionally cold winter had not increased energy consumption. The production of electricity grew by nearly 13 per cent in February, as against a mere 2 per cent on the year before in January. Output fell in almost all main sectors. Only the manufacture of electrical products and metal products, and oil refining saw an increase. The growth rate slackened even in the manufacture of electrical products, which is one of the most important sectors of the export-driven economic growth.

Output in the metal industry increased by close on 4 per cent in the year to February, while in January the growth rate was about 7 per cent. Growth in output was sustained by the manufacture of electrical products, which grew by a good 11 per cent on the year before. Output fell in the other main sectors of the metal industry with the exception of the manufacture of metal products.

In the wood and paper industry output fell by over 11 per cent in the year to February. In January the output decreased by a full 9 per cent. The manufacture of pulp, paper and paper products decreased by nearly 12 per cent on the year before, as did the output of the mechanical wood industry, by 10 per cent.

The stagnation of growth also lowered the capacity utilisation rate. Of the capacity in manufacturing just under 82 per cent was utilised in February, which is a fall of almost 5 percentage points compared to the year before. In the metal industry, the utilisation rate was just under 88 per cent, which is a good 4 percentage points less than the year before. In the wood and paper industry the utilisation rate remained at just under 84 per cent, as much as 11 percentage points down on the previous year. In other manufacturing, mainly in that of the domestic markets the capacity utilisation rate stayed at close on 75 per cent.

Source: Volume Index of Industrial Output, February 1996
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