Estonian industrial output increased by 2.3% year on year at constant prices in July 2026, with production rising in mining, energy and manufacturing.
The increase, based on Statistics Estonia data, ended five consecutive months of decline in the manufacturing sector. Industrial production also grew by 13.5% in mining and quarrying and by 16% in energy.
Manufacturing returns to growth
Manufacturing grew increased by 1.1% compared with July 2025. Riin Kadarik, leading analyst at Statistics Estonia, said manufacturing production began to grow again after falling for five months.
Wood processing, the largest branch of Estonia’s manufacturing industry, made the strongest contribution to the increase. Its output was 10.8% higher than a year earlier. Almost half of the sector’s growth came from the production of solid fuels made from plant biomass.
Production of machinery and equipment not elsewhere classified also rose sharply, increasing by 30.3%. The growth was driven mainly by higher production of lifting equipment and special-purpose machinery.
Output increased in two-thirds of manufacturing activities during the month. Production of electrical equipment rose by 4%, while computers, electronic and optical equipment increased by 3%.
Food production grew by 1.5%, marking its first year-on-year increase this year. The sector last recorded growth in December 2025. Among the major activities, fabricated metal products was the main area to continue contracting, with output down 0.9%.
Sales rise in domestic and export markets
Manufacturing companies sold 65.2% of their output to foreign markets in July. The share was slightly higher in June. At current prices and adjusted for working days, manufacturing sales increased by 7.9% compared with July 2025. Domestic sales rose by 8.6%, while export sales increased by 7.5%.
Seasonally adjusted figures show that total industrial production increased by 0.9% from June to July. Manufacturing output rose by 0.2% over the same period.
Energy output increases
Energy-sector output rose by 16% at constant prices. Measured in megawatt-hours, electricity production increased by 9.6% year on year and heat production by 13.2%.
Kadarik said the increase in electricity production was mainly linked to higher output from domestic generation, while imports remained close to their level in July 2025.
Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.
