Croatian industrial production in July increased by 7.2 percent compared with the same month last year.

Growth was also recorded on a monthly basis, so production was 3.9 percent higher than in June.

The largest growth in important products

According to the latest data from the Croatian Bureau of Statistics, the largest annual increase of 16.6 percent was recorded in raw materials, parts, and other products used in further production. Energy production increased by 9.1 percent, while the production of machinery, equipment, and other capital goods fell by 7.4 percent.

Manufacturing drove the growth

Good results were achieved by manufacturing, whose production increased by 6.8 percent year-on-year. Production in electricity, gas, steam, and air conditioning supply increased by 10.9 percent, while in mining and quarrying it fell by 3.7 percent.

Production is growing, but there are fewer workers

Despite strong production growth, the number of employees in Croatian industry decreased by 5.1 percent compared with July last year. At the same time, stocks of finished products increased by 9 percent, and labor productivity in the first seven months increased by 7.2 percent.

The July data show that Croatian industry can achieve strong growth, but also that serious challenges remain behind the good figures. If the number of employees continues to decline and the production of equipment and durable goods continues to fall, one strong month will not be enough to conclude that industry has entered a period of stable recovery.