Industrial Production Down in Hungary by 5.3%

Industrial production in Hungary decreased by 5.3% in August this year according to this Friday's report by the country's Central Statistical Office (KSH) that also strikes a positive note by stating that the manufacture of transport equipment actually grew by 4.6%.

The volume of industrial production declined in August 2023 by 5.3%, year-on-year. Based on working-day adjusted data production fell by 6.1%. 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, and that of electrical equipment. According to seasonally and working-day adjusted data industrial output was 2.4% lower than in July 2023.

In August 2023:
× The volume of industrial production decreased by 5.3% compared to the same period of the previous year. (Compared to the August data published in the first estimate, the data in the second estimate did not change.)
× Industrial output in August – according to seasonally and working-day adjusted indices – was 2.4% below the level of the previous month.
× The volume of industrial export was 8.1% lower than a year earlier. Transport equipment export, representing a 31% weight within export sales in manufacturing grew by 1.1%, the manufacture of electrical equipment export, accounting for a 16% weight, went up by 19.8%.
× Domestic sales of industry fell by 17.6%, those of manufacturing decreased by 9.0% compared to the same month of the previous year.
× Within industry, manufacturing output, which accounts for a decisive share in industry (95%), declined by 4.7%, that of mining and quarrying, having a small weight, fell by 33%, production in energy industry (electricity, gas, steam and air conditioning supply) dropped by 16.5%.
× The manufacture of transport equipment, representing 23% of the manufacturing production (having the largest weight), increased by 4.6%. compared to the same month of the previous year. Motor vehicles manufacturing grew by 4.3%, the manufacture of parts and accessories for motor vehicles rose by 3.7%.
× The manufacture of electrical equipment, having a 12% weight in manufacturing, was 15.8% higher year-on-year. Out 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 declined by 10.0%.
× The manufacture of computer, electronic and optical products, accounting for 10% within manufacturing, decreased by 11.2% compared to the same month of the previous year. Out of the two largest groups, the manufacture of electronic components and boards fell by 11.5%, the manufacture of consumer electronics dropped by 13.4%.
× The manufacture of food products, beverages and tobacco products, having a 14% share in manufacturing, declined by 10.1% year-on-year, with sales falling in both directions. Output grew in only three groups (between 5.4% and 14.7%) Processing and preserving meat and the production of meat products, representing the largest weight (22%), dropped by 13.4% year-on-year. Production decreased between 5.5% and 46% in the other seven groups, least of all in the manufacture of vegetable and animal oils and fats, 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 fell by 16.2%, the manufacture of basic metals and fabricated metal products declined by 3.8% compared to the same month of the previous year.
× The rate of decrease slackened in the manufacture of coke, and refined petroleum products: the output dropped 10.0% in August, first of all owing to a decrease in domestic sales, while export sales rose.
× The manufacture of basic pharmaceutical products and pharmaceutical preparations lagged behind the most, by 16.5% compared to a year earlier, due to a fall in both domestic and export sales.