Analytics, Covid-19, Industry, Latvia, Markets and Companies

In April, COVID-19 and emergency situation declared in the country has affected output of manufacturing enterprises stronger, which declined as manufacturing enterprises temporarily ceased production (down-time), demand for production reduced (termination of activity of partners and clients), as well as impact of closed borders on the delivery of materials and exports volume of products manufactured increased. 8.8% or 106 of the surveyed enterprises mentioned COVID-19 as the reason behind the production output decline and in another 18 manufacturing enterprises production was terminated in April due to down-time.

Majority of manufacturing sectors showed production output reduction, of which in manufacturing sectors having the largest share in industrial production: manufacture of wood and of products of wood and cork, except furniture (of 4.3%), manufacture of food products (7.7%) and manufacture of fabricated metal products, except machinery and equipment (6.3%). In April, significant downturn was recorded in manufacture of motor vehicles, trailers and semi-trailers (manufacture of motor vehicle parts and accessories, which includes various components of motor vehicles) (of 57%), repair and installation of machinery and equipment (39.4%),manufacture of textiles and manufacture of wearing apparel (34.5% and 25.8%, respectively).

Compared to April 2019, production output increased in manufacture of chemicals and chemical products by 27.5% (as demand for disinfectants rose due to COVID-19 and demand in general), manufacture of electrical equipment – by 10%, printing and reproduction of recorded media – by 6.4% and manufacture of computer, electronic and optical products.

Compared to March 2020, in April 2020, industrial production output dropped by 7.4% (according to seasonal adjusted data at constant prices). Of which in manufacturing (of 5.9%), mining and quarrying (1.8%) and electricity and gas supply (15.3%).

Changes in industrial production output (as %, at constant prices)

* Repair and maintenance of ships and boats, repair of fabricated metal products, machinery and equipment, installation of industrial machinery and equipment.

Manufacturing turnover²

Compared to April 2019, in April 2020, manufacturing turnover, according to calendar adjusted data at current prices, reduced by 6%, turnover on the domestic market fell by 5.6% and export turnover – by 6.3% (of which by 4.2% in euro area and by 8% in non-euro area).

Compared to March 2020, in April 2020 manufacturing turnover, according to seasonally adjusted data,, decreased by 7.2%, turnover on the domestic market fell by 7.1% and export turnover – by 7.3% (of which by 4.2% in euro area and by 9.9% in non-euro area).

Report on industrial activity was submitted by 96.7% enterprises; the number and quality of the data submitted does not differ significantly from previous periods. We would like to thank all enterprises for the support and understanding in emergency situation by providing the information needed for compilation of industrial statistics data.

The data published may be specified during the upcoming months if additional information is received. On June 3 of this year, data on March 2020 are revised.

 Methodological explanations

¹The volume index of industrial production describes changes in the volume of industrial production during the reference period in comparison to the base period. The index is estimated by recalculating the production output indicator at constant prices with the help of producer price indices.

²The industrial turnover index measures the monthly development of market demand for industrial goods and services. It is calculated at current prices without excluding price influence. Unlike industrial goods that also include unfinished goods and goods in stock, turnover only includes the goods sold and industrial services provided.