Hungarian Industrial Production Down in March

In March, industrial production was 4.1% below the level of the corresponding month a year earlier, MTI reports based on data by the Hungarian Central Statistical Office (KSH).

Adjusted for working day effects, production decreased by 4.0%, KSH confirmed in its second estimate on Friday.

Production dropped in the majority of the manufacturing subsections, at the same time the production volume increased significantly in the largest weight carrying manufacture of transport equipment, and that of electrical equipment.

Detailed data show that in March 2023
The volume of industrial production decreased by 4.1% compared to the same period of the previous year. (Compared to the March data published in the first estimate, the data in the second estimate did not change.)

Industrial output in March – according to seasonally and working-day adjusted indices – was 0.2% above the level of the previous month.

The volume of industrial export was 0.4% higher than a year earlier. Transport equipment export, representing a 32% weight within export sales in manufacturing went up by 31%, the export in manufacture of electronical equipment accounting for a 14% weight, rose by 23%.

Domestic sales of industry fell by 17.0%, those of manufacturing lessened by 13.1% compared to the same month of the previous year.

Within industry, manufacturing output, which accounts for a decisive share in industry (96%), declined by 2.9%, that of mining and quarrying, having a small weight, fell by 23%, production in energy industry (electricity, gas, steam and air conditioning supply) dropped by 25%.

The manufacture of transport equipment, representing 26% of the manufacturing production (having the largest weight), grew at the highest rate within the subsections, by 23.5%. compared to the same month of the previous year. Motor vehicles manufacturing went up by 27%, the manufacture of parts and accessories for motor vehicles rose by 21%.

The manufacture of electrical equipment having an 11% weight in manufacturing was 23% higher year-on-year. Of the two largest weight representing groups the manufacture of batteries and accumulators went up by 39%, the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus increased by 12.9%.

The manufacture of computer, electronic and optical products accounting for 9% of manufacturing dropped by 13.8% compared to the same month of the previous year. Out of the two largest groups, the manufacture of consumer electronics decreased by 24%, the manufacture of electronic components and boards fell by 12.1%.

The manufacture of food products, beverages and tobacco products having a 12% share in manufacturing dropped by 13.3% year-on-year, due to a fall in both domestic and export sales. Output grew in only three groups, at the highest rate of 8.9% in the manufacture of tobacco products. The processing and preserving meat and the production of meat products representing the largest weight (23%) dropped by 11.3% year-on-year. Production decreased between 9.0% and 46% in the other seven groups, least of all in the manufacture of dairy products, to the greatest extent in the small weight representing processing and preserving of fish, crustaceans and molluscs.

Out of the two medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products dropped by 17.1%, the manufacture of basic metals and fabricated metal products declined by 12.9% compared to the same month of the previous year. Within the latter, the volume declined to an even greater extent in the division of metallurgy (manufacture of basic metals).

The decline continued in the manufacture of chemicals and chemical products, where production fell in March by 27%, year-on-year, primarily owing to a considerable drop in the manufacture of plastics in primary forms, that of fertilisers and nitrogen compounds, as well as that of other organic basic chemicals.

Output in the manufacture of coke, and refined petroleum products lagged behind the most, by 30%, compared to a year earlier, with sales falling in both directions.