Industrial Production Down in Hungary

The volume of industrial production declined in June 2023 in Hungary by 3.8%, year-on-year. Based on working-day adjusted data production fell by 6.1%. Analysts note that industrial production has been declining in the country for seven months now.

Production dropped in the majority of the manufacturing subsections, at the same time production volume grew in the largest weight carrying manufacture of transport equipment (by 19.1%), and that of electrical equipment. According to seasonally and working-day adjusted data industrial output was 0.9% lower than in May 2023, the Central Statistical Office reports.

In June 2023:
The volume of industrial production decreased by 3.8% compared to the same period of the previous year. (Compared to the June data published in the first estimate, the data in the second estimate did not change.)

Industrial output in June – according to seasonally and working-day adjusted indices – was 0.9% below the level of the previous month.

The volume of industrial export was 4.0% higher than a year earlier. Transport equipment export, representing a 33% weight within export sales in manufacturing grew by 23%, the export in manufacture of electronical equipment, accounting for a 15% weight, went up by 24%.

Domestic sales of industry fell by 20%, those of manufacturing decreased by 8.7% compared to the same month of the previous year.

Within industry, manufacturing output, which accounts for a decisive share in industry (95%), declined by 0.8%, that of mining and quarrying, having a small weight, fell by 29%, production in energy industry (electricity, gas, steam and air conditioning supply) dropped by 33%.

The manufacture of transport equipment, representing 28% of the manufacturing production (having the largest weight), grew at the highest rate within the subsections, by 19.1%. compared to the same month of the previous year. Motor vehicles manufacturing went up by 25%, the manufacture of parts and accessories for motor vehicles rose by 14.4%.

The manufacture of electrical equipment having a 11% weight in manufacturing was 16.9% higher year-on-year. Out of the two largest weight representing groups the manufacture of batteries and accumulators grew by 28%, the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus increased by 6.5%.

The manufacture of computer, electronic and optical products accounting for 10% of manufacturing declined by 5.1% compared to the same month of the previous year. Out of the two largest groups, the manufacture of electronic components and boards decreased by 2.6%, the manufacture of consumer electronics fell by 9.4%.

The manufacture of food products, beverages and tobacco products having a 12% share in manufacturing dropped by 11.1% year-on-year, owing to a fall in both domestic and export sales. Output grew in only three groups, at the highest rate in the small weight carrying manufacture of tobacco products (by 29%). Processing and preserving meat and the production of meat products, representing the largest weight (22%), declined by 6.7% year-on-year. Production decreased between 6.1% and 40% in the other eight groups, least of all in the manufacture of processing and preserving of fruit and vegetables, 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 20%, the manufacture of basic metals and fabricated metal products fell by 13.9% compared to the same month of the previous year.

After a two-month long relapse the output in manufacture of machinery and equipment n.e.c, having a small weight, rose by 7.2%, first of all due to an increase in export sales, while domestic sales dropped considerably.

The manufacture of chemicals and chemical products lagged behind the most, by 27% year-on-year, a significant decline was recorded in the great majority of the classes.