Industrial Production Down by 0.2% in Hungary

In January 2023, the volume of industrial production declined by 0.2% year-on-year in Hungary. Based on working-day adjusted data, production dropped by 3.2%, the Central Statistical Office (KSH) reported this Tuesday.

Production increased in some manufacturing subsections, with the largest growth in the manufacture of electrical equipment. According to seasonally and working-day adjusted data industrial output was 5.1% lower than in December 2022.

In January 2023:
The volume of industrial production decreased by 0.2% compared to the same period of the previous year. (Compared to the January data published in the first estimate, the data in the second estimate did not change.)

The volume of industrial export was 0.2% lower than a year earlier. Transport equipment export, representing a 31% weight within export sales in manufacturing grew by 19.5%, the export in manufacture of electronical equipment accounting for a 14% weight, went up by 51%.

Domestic sales of industry fell by 16.5% and those of manufacturing by 11.5% compared to the same month of the previous year.

Production increased by 1.2% in manufacturing, which dominates industry with a 96% weight and fell by 16.6% in mining and quarrying having a small weight. The output of energy industry (electricity, gas, steam and air-conditioning supply) dropped by 19.5%, mainly due to the much milder weather compared with the previous year (according to the Hungarian Meteorological Service, the average mean temperature in January 2023 was 3.3(C higher than in January 2022).

The manufacture of transport equipment, accounting for 25%, the largest weight in manufacturing, was 20% up on a year earlier. Motor vehicles manufacturing went up by 29%, the manufacture of parts and accessories for motor vehicles rose by 14.4%.

The manufacture of electrical equipment having an 11% weight in manufacturing grew by the highest rate of all subsections, up 44%. Of the two largest groups by weight, the manufacture of batteries and accumulators went up by 97% and the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus by 15.7%.

The manufacture of computer, electronic and optical products accounting for 11% of manufacturing grew by 10.8% compared to the same month of the previous year. Out of the two largest groups, the manufacture of electronic components and boards increased by 12.6%, while the manufacture of consumer electronics declined by 0.9%.

The manufacture of food products, beverages and tobacco products having a 12% share in manufacturing dropped by 12.2%, owing to a decrease in both domestic and export sales. Output increased in only two groups: manufacture of other food products, including manufacture of cocoa, chocolate and sugar confectionery and manufacture of prepared meals and dishes, by 7.7% and manufacture of tobacco products by 48%. The processing and preserving meat and the production of meat products representing the largest weight (21%) fell by 15.6% year-on-year. Production decreased between 0.1 and 51% in the other eight groups, most notably in the processing and preserving of fish, crustaceans and molluscs, having a very small weight.

Out of the two medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products dropped by 13.5%, 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 manufacture of basic iron and steel and of ferro-alloys has shrunk to around half of January 2022.

The decline in the manufacture of chemicals and chemical products continued (by 28%), primarily due to a considerable drop in the manufacture of plastics in primary forms as well as that of fertilisers and nitrogen compounds.

Output in the manufacture of coke, and refined petroleum products was down the most, by 35% from a year earlier, with sales falling in both directions.