Industrial Production in Hungary Down by 4.6%

In February 2023, the volume of industrial production declined by 4.6% year-on-year in Hungary. The working day adjusted index is equal to the non-adjusted one, the Central Statistical Office reports.

Production dropped in the majority of the manufacturing subsections, at the same time the production volume increased in the largest weight carrying manufacture of transport equipment. According to seasonally and working-day adjusted data industrial output was 0.3% higher than in January 2023.

In February 2023:
The volume of industrial production decreased by 4.6% compared to the same period of the previous year. (Compared to the February data published in the first estimate, the data in the second estimate did not change.)

Industrial output in February – according to seasonally and working-day adjusted indices – was 0.3% above the level of the previous month.

The volume of industrial export was 2.0% lower than a year earlier. Transport equipment export, representing a 33% weight within export sales in manufacturing grew by 7.4%, the export in manufacture of electronical equipment accounting for a 14% weight, went up by 42%.

Domestic sales of industry fell by 12.2% and those of manufacturing lessened by 11.0% compared to the same month of the previous year.

Within industry, manufacturing output, which accounts for a decisive share in industry (98%), declined by 4.0%, energy industry (electricity, gas, steam and air conditioning supply) dropped by 18.3% and mining and quarrying having a small weight, fell by 26%.

The manufacture of transport equipment, representing 27% of the manufacturing production (having the largest weight), was 7.5% higher year-on-year. Motor vehicles manufacturing went up by 4.1%, the manufacture of parts and accessories for motor vehicles rose by 11.6%.

The manufacture of electrical equipment having an 11% weight in manufacturing grew at the highest rate within the subsections, by 28%. Of the two largest weight representing groups the manufacture of batteries and accumulators went up by 47% and the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus rose by 22%.

The manufacture of computer, electronic and optical products accounting for 10% of manufacturing declined by 8.9% compared to the same month of the previous year. Out of the two largest groups, the manufacture of electronic components and boards decreased by 13.6%, the manufacture of consumer electronics dropped by 12.5%.

The manufacture of food products, beverages and tobacco products having more than a 11% share in manufacturing fell by 13.6% year-on-year, due to a decrease in both domestic and export sales. Output grew in only two groups: by 3.6% in the manufacture of other food products, including manufacture of cocoa, chocolate and sugar confectionery and manufacture of prepared meals and dishes, and in the manufacture of tobacco products, by 7.7%. The processing and preserving meat and the production of meat products representing the largest weight (22%) dropped by 14.2% year-on-year. Production decreased between 3.7% and 43% in the other eight groups, least of all in the bakery and pasta manufacturing, 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 16.5%, the manufacture of basic metals and fabricated metal products declined by 14.2% 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 more than a half of February 2022 level.

The decline has been ongoing since April 2022 in the manufacture of chemicals and chemical products: in February the production fell by 23% year-on-year, primarily owing 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 31%, compared to a year earlier, with sales falling in both directions.

In January–February 2023, compared to the same period of the previous year:
Industrial production decreased by 2.4%. The volume of export sales, representing 58% of all sales declined by 1.1%, domestic sales accounting for 41% of all sales fell by 14.4%.

Out of the 13 subsections of manufacturing the production declined in 6 , to the greatest extent, by 33% in the manufacture of coke, and refined petroleum product. In the others production volume increased between 0.5% and 35%, 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 13.3%.