The April increase in industrial production to 3.1% year on year marks a fairly significant slowdown after a very strong March. This reading confirms that the earlier acceleration was largely a one-off rebound following a weaker start to the year.
The conflict in the Persian Gulf and its impact on key production raw materials remain important factors shaping the dynamics of industrial output. Despite the slowdown, industry remains on a growth path, although the pace is now more moderate.
In the background, barriers such as weaker demand and high production costs are still visible. The data therefore suggest a stabilisation of business conditions rather than a strong and lasting recovery.
