16 March, 1998

Inquiries: Mr Kari Rautio + 358 9 1734 2479
Statistical Director in charge: Mr Ilkka Hyppönen

Industrial output grew by 8 per cent in January

According to Statistics Finland's index per working day, industrial output increased by 8 per cent in the year to January. Growth rate of industrial output was faster than average in the metal industry and in the wood and paper industry.

Output in the metal industry increased by good 14 per cent in January. Of the main sectors of the metal industry, the biggest output increases were recorded in the manufacture of electrical equipment, up by as much as 29 per cent, and in the manufacture of transport equipment, up by good 14 per cent. In the wood and paper industry, output increased by good 8 per cent in January. The manufacture of pulp, paper and paper products grew by over 10 per cent, whereas output of wood and wood products increased only by under 2 per cent.

Output in the chemical industry grew by good 4 per cent, and in other manufacturing industry by nearly 5 per cent. Over 14 per cent more investment goods and good 15 per cent more durable consumer goods were produced in January compared to January 1997. Output of raw materials and output commodities also grew by good 9 per cent in January.

Nearly 90 per cent of the manufacturing capacity was in use in January. The pulp and paper industry continued to operate at almost full capacity. Capacity utilisation rate in the metal industry was almost 92 per cent and in the chemical industry nearly 84 per cent.

Revised Volume Index of Industrial Output

Statistics Finland has revised its Volume Index of Industrial Output with effect from 1 January 1998. The new base year for the index is 1995. According to international recommendations, the weight structure of the Volume Index of Industrial Output is changed regularly once every five years, the selected base years being the years ending in 0 or 5.

The Volume Index of Industrial Output has been calculated from 1995 onwards using the new weight structure and base year. Indices for the years from 1985 to 1994 have been calculated by chaining them with the aid of the original point figures and the new weight structure to correspond with the new base year and industrial classification.

The industrial classification has also been changed. The Standard Industrial Classification 1995, used in most Member States of the European Union, has been introduced into the Statistics on Industrial Trends. The new industrial classification will facilitate easier comparison between different Member States.

Due to the revision of the industrial classification and weight structure, old index series will also change from what was previously published. The weight of the manufacture of pulp, paper and paper products has increased most. While this industry's proportion in 1990 was under 12 per cent of the value added of the total industry, it was as much as 19 per cent in 1995. The weight of the manufacture of electrical equipment has also increased from 8 per cent to good 11 per cent. The weight of the manufacture of food, beverages and tobacco products has fallen most, from good 12 to 8 per cent.

Changes in the weight structure and industrial classification of the Volume Index of Industrial Output have influenced the growth figures of the previous years. According to preliminary data, output grew by 9 per cent in 1997, instead of the previously published 8.2 per cent. The growth in 1996 was 3.2 per cent, instead of the previously published 3.4 per cent.

Source: Volume Index of Industrial Output 1998, January. Statistics Finland