Industrial Production Down in Hungary by 6.9% Annually

The volume of industrial production in Hungary declined in May 2023 by 6.9%, year-on-year. The same figure for the same month in the euro zone was a decrease of 2.2%.

As the country's Central Statistical Office reports, production in Hungary dropped in the majority of the manufacturing subsections, however, 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 1.6% higher than in April 2023.

In the euro zone in May 2023, compared with April 2023, production of capital goods grew by 1.0%, intermediate goods and durable consumer goods both by 0.5% and non-durable consumer goods by 0.3%, while production of energy fell by 1.1%, Eurostat figures say.

Regarding detailed figures for industrial production in Hungary in the month of May compared to a year before, they are as follows:

- The volume of industrial export was 0.3% higher than a year earlier. Transport equipment export, representing a 33% weight within export sales in manufacturing rose by 14.6%, the export in manufacture of electronical equipment, accounting for a 15% weight, went up by 25%.

- Domestic sales of industry fell by 18.4%, those of manufacturing lessened by 11.4% compared to the same month of the previous year.

- Within industry, manufacturing output, which accounts for a decisive share in industry (96%), declined by 5.0%, 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 32%.

- The manufacture of transport equipment, representing 26% 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 10.1%, the manufacture of parts and accessories for motor vehicles went up by 11.0%.

- The manufacture of electrical equipment having a 12% weight in manufacturing was 13.4% higher year-on-year. Out of the two largest weight representing groups the manufacture of batteries and accumulators went up by 33%, the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus decreased by 5.9%.

- The manufacture of computer, electronic and optical products accounting for 9% of manufacturing dropped by 6.9% compared to the same month of the previous year. Out of the two largest groups, the manufacture of consumer electronics declined by 7.5%, the manufacture of electronic components and boards fell by 9.4%.

- The manufacture of food products, beverages and tobacco products having a 12% share in manufacturing dropped by 16.7% year-on-year, owing to a fall in both domestic and export sales. Output grew in only two groups: the manufacture of tobacco products, by 15.4% and the bakery and farinaceous products, by 3.1%. The processing and preserving meat and the production of meat products representing the largest weight (23%) dropped by 13.5% year-on-year. Production decreased between 11.1% and 47% 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 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 at the highest rate within the subsections, by 25%, the manufacture of basic metals and fabricated metal products fell by 15.4% 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).

- After a two-months long decrease the output in manufacture of pharmaceuticals, medicinal chemical and botanical products, having a smaller weight, grew by 6.7%, first of all due to an increase in export sales, while domestic sales lessened.

- The manufacture of chemicals and chemical products lagged behind the previous year’s value by 20%, a significant decline was recorded in the great majority of the classes.

- Industrial production increased only in Pest region (by 2.7%). In the other regions volume decreases 0.7% and 13.9% were recorded, the highest one in Northern Hungary.

- The volume of total new orders in the observed divisions of manufacturing was 0.5% lower compared to May 2022. New domestic orders dropped by 9.3%, new export orders grew by 1.1%. The total stock of orders at the end of May was above the previous year’s level by 8.5%.