The State Statistics Bureau (DZS) published its industrial production volume index for January 2018, and it is not encouraging. According to the DZS, the adjusted production in January 2018 decreased by 1.7% compared to December, or by a total of 0.4% year-on-year.

By MIG aggregates, energy production decreased by 5.7%, and production of capital goods is down 1.4%. Production of durable consumer goods increased by 3.6%, of intermediate goods by 2% and of non-durable consumer goods by 0.2%.

Year-on-year, Croatia produced 12.4% less capital goods and 7.7% less energy, while increasing production of durable consumer goods by 20.5%, intermediate goods by 9.7%, and non-durable consumer goods by 2%.

By sectors, monthly adjusted production of electricity, gas, steam and air conditioning dropped by 13.3%, and production in Mining and quarrying went up by 0.7%. Manufacturing went up by 0.1%. In comparison to January 2017, production of electricity, gas, steam and air conditioning dropped by 13.7%, while production in Mining and quarrying went up by 0.7% and manufacturing by 2.8%.

Total stock at the end of industrial products was 0.7% down compared to December, but 6.5% up compared to last January. Total number of persons employed in industry was 1% less than last December, and 0.2% less than last January. At the same time, total labor productivity rose by 3.3% on the annual level.

This is the third month in a row that industrial production decreased, something not recorded since 2013. Most economists yesterday expected a moderate drop of 0.5-0.7%, or maybe even a raise of 2.5% according to the state news agency HINA. They also saw a part of the reason for such a big drop in the fact that last January presented a high base as the industrial production in that month rose by 4.3%.