SYNTHESIS INE@COVID-19, 27 Oct -2020

October . 27 . 2020 SYNTH SIS IN @ COVID-19 www.ine.pt page 3/9 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt Month-on-month rate of change In September 2020: • The Industrial Production Price Index registered a month- on-month rate of change of +0.1% in September (-0.4% in the same period of 2019); • The Energy index increased by 0.7% (-0.7% in September of the previous year); • Manufacturing Industries decreased by 0.1% (-0.3% in September 2019). Total Index and Major Industrial Groupings (month-on-month rate of change) More information available at: Industrial production price index - September 2020 (20 October 2020) -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% Total Consumer goods Intermediate goods Investments goods Energy September 2019 September 2020 -0.7% 0.7% 0.2% 0.0% 0.1% -0.1% -0.5% -0.1% -0.2% -0.4% Partial and slower recovery of the economic activity In September, the economic sentiment indicator in the Euro Area (AE) extended the recovery profile, albeit at a slower pace, and the consumer confidence indicator increased slightly. In the same month, the prices of raw materials and oil presented monthly growth rates of +3.7% and -8.3%, respectively (+7.6% and +0.3% in August). In Portugal, the economic activity has been recording steep declines, but progressively less intense between June and September: • The economic climate indicator continued to recover in August, as in the four previous months, from the strong reductions registered in April. In September, this indicator reflected the increased confidence in Manufacturing Industry, Retail trade, Construction, and particularly in Services; • The consumer confidence indicator decreased in September, remaining at a level close to the one verified in the three previous months, after the partial recovery observed inMay and in June, but remaining significantly below the pre-pandemic levels. This evolution resulted from the negative contributions of the perspectives regarding the future evolution of the country’s economic situation and, to a lesser extent, of the household’s financial situation, as well as opinions about the past evolution of the household’s financial situation. On the contrary, expectations regarding major purchases contributed positively; • The manufacturing industry confidence indicator decreased in September, interrupting the recovery verified between June and August, after reaching in May the minimum of the series, as a result of the abrupt fall registered in April. In September, the behaviour of the indicator reflected the sharp negative contribution of the balance of the firm’s production perspectives, while the balances on the evolution of global demand and opinions on the current stock of finished products contributed positively. In the last month, the indicator decreased in the group of “Intermediate Goods”, increased strongly in the “Investment Goods” group, and stabilized in the “Consumer Goods” group; • The construction and public works confidence indicator recovered between May and September, after registering the most pronounced decrease in the series in April, having reached its minimum since November 2015. The recovery of the indicator in the last four months reflected the positive contributions of both components, the balance of opinions on order books and perspectives on employment. In September, concerning this indicator, the “Civil Engineering” division recovered from the accumulated losses recorded since the beginning of the year;