Manufacturing production gradually strengthened from the end of last year’s third quarter until January but declined in February (–1.8%, seasonally adjusted). Production contracted across most industry groups by technological intensity. On average in the first two months, production in the high-technology sectors was higher – according to our estimates, primarily due to the pharmaceutical industry. Production also increased in most medium-low-technology industries (except for the manufacture of fabricated metal products). Production in low-technology industries was, on average, similar to that of a year earlier. Output in most medium-high-technology industries was lower year-on-year, with the exception of the energy-intensive chemical industry and manufacture of electrical equipment. Output was also higher in most other energy-intensive industries, while it remained similar to a year ago in the paper industry. On average, manufacturing output in the first two months was slightly lower year-on-year (-0.7%). 
In an uncertain international economic environment, sentiment in manufacturing is not improving. Export orders remained low in the first quarter and expectations for production and employment levels have deteriorated slightly. 

The 12-month current account surplus (up to February) was slightly lower than in the previous 12-month period (EUR 2.9 billion), amounting to EUR 2.8 billion (4.0% of estimated GDP). This change was driven by the goods trade balance and the secondary income balance. The higher goods deficit was the result of higher import growth than export growth, while the higher secondary income deficit was mainly due to lower government revenues. The services surplus remained high, increasing primarily in trade in technical trade-related services and transport services. The decline in the primary income deficit was mostly due to higher subsidies from the EU budget and lower net outflows of income from equity capital (dividends and profits).