Manufacturing Industry Shows Mixed Performance in October
October proved to be a month of contrasts for Latvia’s manufacturing industry. While overall production volumes dipped slightly compared to the same period last year, some sectors experienced significant growth, driven by robust export opportunities.
The Central Bureau of Statistics reported that, according to unadjusted data, production volumes increased by 2.3% in October compared to October 2023. However, calendar-adjusted data showed a 1.2% decrease. Over the first ten months of the year, production volumes were 2.3% lower than in the corresponding period in 2023.
“Different industrial sub-sectors still show different development trends,”
Different industrial sub-sectors still show different development trends. In October, the most significant positive impact on the increase in total production volumes came from the woodworking sector, which saw output surge by 3.5% compared to last October. Significant growth was also recorded in the rubber and plastic industry (+20.8%), production of non-metallic mineral products (+9.5%) and furniture (+17.6%). On the other hand, production volumes in the automotive sector (-23.4%), computers, electronics, and optical equipment (-8.6%) and machinery and equipment (-13.4%) decreased.
October also saw a 2.3% rise in the manufacturing industry’s annual turnover in actual prices. Domestic demand increased by 4%, while exports grew by 1.3%. Sales volume for wood products, chemical industry products, and furniture showed particularly strong growth.
Challenges and Opportunities for the Final Months of 2024
Experts predict that the manufacturing industry will see moderate growth rates in the final months of 2024, driven heavily by export opportunities. However, challenges remain for companies with existing ties to Russian and CIS countries, as ongoing geopolitical uncertainties continue to impact supply chains and markets.
“Difficulties will remain for those companies that are still connected to the markets of Russia and the CIS countries. In this situation, merchants are advised to continue looking for new delivery options and markets for goods,”
“On the other hand, industrial sectors oriented to the internal market will be affected by the purchasing power of the population,”
What are some of the factors contributing to the disparities in performance between different sectors of Latvia’s manufacturing industry?
## Latvia’s Manufacturing: A Tale of Two Sectors
**Welcome back to the show. Today we’re joined by [Guest Name & Title], an expert on Latvia’s manufacturing industry, to discuss October’s performance. [Guest Name], thanks for joining us.**
**Guest:** Thanks for having me.
**Host:** Latvia’s manufacturing sector seems to be sending mixed signals. While overall production dipped slightly, some sectors are booming. Can you shed some light on this duality?
**Guest:** Absolutely. October was indeed a month of contrasts. While overall figures dipped slightly, the unadjusted data still showed a 2.3% increase compared to October 2023. This suggests that seasonality might be playing a role [1]. However, the calendar-adjusted data shows a 1.2% decrease, indicating a more realistic picture of the month’s performance.
**Host:** So, what sectors are struggling, and which ones are thriving?
**Guest:** Well, as you mentioned, certain sectors are experiencing a surge in growth. Notably, the woodworking sector saw its output surge by 3% [1] . This is likely driven by strong export demand fueled by the sector’s reputation for quality and craftsmanship.
**Host:** That’s a very positive development.
**Guest:** It is. However, other sectors faced headwinds. Without specific numbers, it’s difficult to pinpoint exactly which sectors are struggling, but the overall downturn suggests difficulties in certain areas.
**Host:** What are some possible explanations for these differing performances?
**Guest:** Several factors could be at play. Global economic uncertainty, rising energy costs, and supply chain disruptions might be affecting some industries more than others.
**Host:** Where do you see the manufacturing sector heading in the coming months?
**Guest:** It’s hard to predict with certainty, but I believe that the Latvian manufacturing industry is resilient. The strong performance of sectors like woodworking shows adaptability and potential for growth. However, addressing the challenges faced by other sectors will be crucial for ensuring overall robustness.
**Host:** Thank you, [Guest Name], for sharing your insights. We appreciate your expertise.
