17 August, 1998

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

Growth in industrial output slowed down to 2.8 per cent in June

According to Statistics Finland's index per working day, industrial output went up by only 2.8 per cent in the year to June. Annual growth has not been this modest for a couple of years. Slowdown in the rate of growth was partly due to weather conditions as the production of peat collapsed in June as compared with last year's June. Output in pulp and paper also went down, which was partly caused by repair and maintenance stoppages.

Industrial output is still growing fastest in the metal industry. Output in the metal industry went up by 7.5 per cent in the year to June. Of the sectors of the metal industry, output grew most in the manufacture of metal products, up by almost 20 per cent. In contrast, the manufacture of electrical equipment, which has long been the spearhead of growth, increased only by good 9 per cent. The manufacture of wood and wood products went up by nearly 8 per cent, while the manufacture of pulp, paper and paper products went down by 2.5 per cent.

Output in the chemical industry increased by good 3 per cent in the year to June. Output grew by good 2 per cent in other manufacturing industry producing goods primarily for the domestic market.

Under 87 per cent of the manufacturing capacity was in use in June, which is nearly one percentage point lower than the previous year. In the pulp and paper industry, the capacity rate was 85 per cent, in the metal industry nearly 91 per cent and in the chemical industry almost 80 per cent.

During the January to June period, industrial output increased by 9.1 per cent compared to the corresponding period last year. In the first half of the year, growth was fastest in the metal industry where output increased by good 15 per cent. Output in the wood and paper industry went up by almost 8.5 per cent in the same period. Growth in the chemical industry was 6 per cent and in other manufacturing almost 4 per cent.

In May, the revised growth rate in industrial output as calculated per working day was 12.1 per cent, which is 0.3 percentage points above the previously published figure.

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