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Sales in industry surprisingly grew by a modest 0.5% in February compared to January.
submited on 13.04.2005 in category Privatisation | Macroeconomic developments
submited on 13.04.2005 in category Privatisation | Macroeconomic developments
In 2004, the growth rate for February was 9.7%.
The size of the growth rate is not in line with traditional seasonality – after the decline in January each year, February marks a revival of business activity. In 2005 this did not happen, mainly due to the following:
1. Garment and textiles production starts to feel the competitive pressure from the opening of the EU markets to China.
2. Sales in metals and other base materials production fell by 5.8-5.9% in February, whereas in 2004 they grew by 23-25% February-to-January.
These developments were already discussed in earlier Industry Watch analysis (see for more Industry Watch Wire from March 1st), when we predicted the difficulties that will follow the stabilization of global investment demand and the consequent pressure on the prices of raw materials and metals.
The size of the growth rate is not in line with traditional seasonality – after the decline in January each year, February marks a revival of business activity. In 2005 this did not happen, mainly due to the following:
1. Garment and textiles production starts to feel the competitive pressure from the opening of the EU markets to China.
2. Sales in metals and other base materials production fell by 5.8-5.9% in February, whereas in 2004 they grew by 23-25% February-to-January.
These developments were already discussed in earlier Industry Watch analysis (see for more Industry Watch Wire from March 1st), when we predicted the difficulties that will follow the stabilization of global investment demand and the consequent pressure on the prices of raw materials and metals.
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