Industrial Production Down by 8.3%

The volume of industrial production in Hungary declined in April 2023 by 8.3%, year-on-year, MTI reports quoting data published this Wednesday by the Central Statistical Office.

Based on working-day adjusted data production fell by 5.8%. Production dropped in the great majority of the manufacturing subsections, at the same time the production volume increased in the largest weight carrying manufacture of transport equipment, and in that of electrical equipment. According to seasonally and working-day adjusted data industrial output was 2.5% lower than in March 2023.

In April 2023:
The volume of industrial production decreased by 8.3% compared to the same period of the previous year. (Compared to the April data published in the first estimate, the data in the second estimate did not change.)

Industrial output in April – according to seasonally and working-day adjusted indices – was 2.5% below the level of the previous month.

The volume of industrial export was 2.5% lower than a year earlier. Transport equipment export, representing a 32% weight within export sales in manufacturing rose by 11.3%, the export in manufacture of electronical equipment accounting for a 15% weight, went up by 28%.

Domestic sales of industry fell by 20%, those of manufacturing lessened by 15.8% compared to the same month of the previous year.

Within industry, manufacturing output, which accounts for a decisive share in industry (95%), declined by 7.3%, that of mining and quarrying, having a small weight, fell by 31%, production in energy industry (electricity, gas, steam and air conditioning supply) dropped by 24%.

The manufacture of transport equipment, representing 25% of the manufacturing production (having the largest weight), grew by 10.5%. compared to the same month of the previous year. Motor vehicles manufacturing rose by 7.4%, the manufacture of parts and accessories for motor vehicles went up by 13.9%.

The manufacture of electrical equipment having an 12% weight in manufacturing was 17.8% higher year-on-year. Out of the two largest weight representing groups the manufacture of batteries and accumulators went up by 39%, while the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus decreased by 0.8%.

The manufacture of computer, electronic and optical products accounting for 9% of manufacturing dropped by 12.5% compared to the same month of the previous year. Out of the two largest groups, the manufacture of consumer electronics fell by 9.3%, the manufacture of electronic components and boards declined by 5.0%.

The manufacture of food products, beverages and tobacco products having a 12% share in manufacturing dropped by 20% year-on-year, due to a fall in both domestic and export sales. Output grew in only two groups, the manufacture of tobacco products, by 3.5% and the bakery and farinaceous products, by 0.7%. The processing and preserving meat and the production of meat products representing the largest weight (22%) dropped by 19.7% year-on-year. Production decreased between 4.8% and 39% in the other eight groups, least of all in the manufacture of other food products, including the manufacture of cocoa, chocolate and sugar confectionery, to the greatest extent in the manufacture of grain mill products, starches and starch products.

Out of the two medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products dropped at the highest rate within the subsections, by 24%, the manufacture of basic metals and fabricated metal products fell by 17.4% compared to the same month of the previous year. Within the latter, the volume declined even more in the division of metallurgy (manufacture of basic metals).

The decrease continued in the manufacture of chemicals and chemical products, too, where production dropped in April by 17.4% year-on-year, a significant decline was recorded in the great majority of the classes.

Output in the manufacture of coke, and refined petroleum products lagged behind the previous year’s value by 23%, with sales falling in both directions.

Industrial production increased only in Pest region (by 2.4%). In the other regions volume decreases 5.2% and 13.3% were recorded, the highest one in the Northern Great Plain.

The volume of total new orders in the observed divisions of manufacturing was 9.8% lower compared to April 2022. New domestic orders dropped by 16.9%, new export orders fell by 8.5%. The total stock of orders at the end of April was above the previous year’s level by 6.2%.

In January–April 2023, compared to the same period of the previous year:
Industrial production decreased by 4.3%. The volume of export sales, representing 59% of all sales declined by 1.0%, domestic sales accounting for 41% of all sales fell by 16.3%.

Out of the 13 subsections of manufacturing the production declined in 9, to the greatest extent, by 30%, in the manufacture of coke, and refined petroleum products. In the other four production volume increased between 4.2% and 28%, mostly in the manufacturing of electrical equipment, while the output in the manufacture of transport equipment, considered to be the largest subsection, went up by 15.3%.