Increase in Latvia's industrial output by 0.6% compared to the previous year
Industrial Output Shows Moderate Growth in January 2025
A new report reveals that the overall industrial production in many countries experienced a moderate growth between January 2024 and January 2025, with significant variations across sectors.
Manufacturing Sector
The manufacturing sector showed a slight uptick of 0.1% in January 2025, compared to the same month last year. However, within the sector, there were notable differences. The output of durable goods decreased by 1.4%, with a significant 3.2% decline in automotive products. On the other hand, nondurable goods production grew by 0.7%, boosted by a 2.7% rise in energy nondurables.
Two out of the three sectors having the largest share in manufacturing showed increased output. The manufacture of wood and of products of wood and cork, except furniture increased by 8.9%, and the manufacture of food products increased by 5.0%. However, reduced output was registered in manufacture of wearing apparel, decreasing by 2.6%, manufacture of chemicals and chemical products, decreasing by 9.6%, manufacture of computer, electronic and optical products, decreasing by 12.9%, and manufacture of fabricated metal products, except machinery and equipment, decreasing by 4.9%.
Mining and Quarrying
The output in mining and quarrying increased by 15.9% in January 2025, but it decreased by 1.6% in the same month, compared to the seasonally adjusted data at constant prices.
Utilities
Utilities showed strong growth, with an increase of 24.2% in January 2025, compared to the seasonally adjusted data at constant prices. This substantial increase contributed substantially to overall industrial production gains.
Other Sectors
The output in the manufacture of furniture increased by 3.6%, while the output in the manufacture of rubber and plastic products increased by 16.8%. The output in the manufacture of other non-metallic mineral products increased by 32.9%.
However, the output in electricity and gas supply decreased by 6.6% in January 2025, and the output in repair and installation of machinery and equipment increased by 20.9%.
Turnover
Turnover on the domestic market went down by 1.5% in January 2025 (calendar adjusted data at current prices). Turnover on the non-domestic market went down by 3.9% in January 2025 (seasonally adjusted data). Turnover on the non-domestic market dropped by 4.0% in the non-euro area in January 2025 (calendar adjusted data at current prices), but increased by 4.6% in the euro area in the same month (calendar adjusted data at current prices).
Comparisons to Previous Months and Years
Compared to December 2024, industrial production output increased by 2.3% in January 2025 (seasonally adjusted data at constant prices). However, compared to January 2024, manufacturing turnover reduced by 0.4% in January 2025 (calendar adjusted data at current prices).
Global Industrial Production
Global industrial production (excluding the U.S.) experienced a 1.5% increase year-on-year as of July 2024. This indicates a global moderate recovery and growth trend in industrial output since the COVID-19 disruptions. Advanced economies excluding the U.S. saw a smaller 0.2% rise, while the U.S. showed a year-on-year increase of 0.8% in June 2025.
Manufacturing Labor Productivity
Manufacturing labor productivity grew 2.1% in Q2 2025, with durable manufacturing productivity up 7.1%, reflecting output gains outpacing labor input increases, which further supports sector-specific uplift despite some sub-sector declines.
In summary, between January 2024 and January 2025, utilities and nondurable goods sectors displayed significant positive output trends, while durable goods—especially automotive—saw output declines. Mining output dropped slightly, and manufacturing overall showed modest growth with rising productivity.
European businesses in the finance industry could see positive impacts due to the strong growth in the utilities sector, as increased production in this sector often leads to higher energy demand and subsequent increased revenue for energy providers. Furthermore, the growth in the nondurable goods production, particularly energy nondurables, might also benefit companies operating in the finance industry by generating more capital investments often associated with increased production levels in this sector.
