Industrial output, up 10.6% in June

Industry is showing signs of a rebound, but a large part of production is of the production-to-stock type because managers are waiting for the volume of orders to go up. Industrial output rose by 10.6% in June and by 6.7% in the first six months of this year against the same period of last year, according to the data released by the National Statistics Institute (INS). In 2005, the output had slightly decreased in June and had seen an increase by only 3% in the first six months. In other words, production doubled in the first half of this year against the beginning of last year. However, statistical data show that part of production is of the production-to-stock type since the turnover increase reported for industry is below production increase. Compared with the 6.7% output increase posted in the first six months, industry companies witnessed revenue growth by only 5.5%. “The gap between the two increases is primarily pointing to production-to-stock,” says Ion Ghizdeanu, chairman of the National Forecasting Commission (CNP).