Published on: 13 July 2016

Industrial production increased by 9.2% in May

In May 2016, the volume of industrial output grew by 9.2% year-on-year. Adjusted for working days, the production rose by 4.2% (in May 2016, the number of working days was two more than a year earlier). In the first five months of the year, industrial production went up by 3.0% compared to the same period of the previous year.

In May 2016:

The volume of industrial production – according to seasonally and working-day adjusted indices – was below the level of the previous month by 0.7%.

Industrial production grew by 9.2% year-on-year. (Compared to the data of May published in the first estimate, there was no change in the data of the second estimate.)

The volume of industrial export sales increased by 8.7% compared to the same period of the previous year. Out of the two manufacturing subsections accounting for more than half of export sales, the export of transport equipment, representing 37% of manufacturing exports rose by 5.9%. In the manufacture of computer, electronic and optical products – the other significant subsection giving one seventh of manufacturing exports –, the export volume grew by 15.1%.

Industrial domestic sales went up by 5.2%, while, within this, the domestic sales of manufacturing were 11% higher year-on-year.

Out of the sections of industry, production increased by 9.7% in manufacturing representing a decisive weight (96%) and by 11.2% in energy industry (electricity, gas, steam and air-conditioning supply), while it fell by 24% in mining and quarrying (having little weight) compared to May 2015.

Production and sales of manufacturing

Period Production Total Domestic Export Share of export in sales at current prices, %
sales
Volume index, corresponding period of previous year = 100.0
2014108.7108.5104.5110.173.5
2015108.1108.2106.7108.774.9
2016January100.4101.198.1102.077.4
February107.5109.2108.2109.577.3
March95.695.997.595.576.4
April106.1106.3104.9106.775.9
May109.7109.0111.0108.375.0
From the beginning of the year103.7104.1103.9104.276.4

Out of the thirteen subsections of manufacturing, production declined only in one, while volume increases of 6.2 to 17.2% were measured in the other subsections compared to the same month of the previous year.

Out of subsections with a significant weight, the production of transport equipment representing nearly one third of the manufacturing output rose by 6.9%, which was lower than the manufacturing average. Out of the two major groups – giving a combined share of 96% in the output of the subsection – the manufacture of motor vehicles increased less, by 1.0%, and the manufacture of parts and accessories for motor vehicles grew at a higher rate of 14.4%.

The manufacture of computer, electronic and optical products ranked second in manufacturing (having an 11% share in manufacturing) rose at the highest rate of 17.2% among the subsections. The output increased in every group of the subsection: out of the two dominant groups, the larger one, the manufacture of consumer electronics grew by 17.4%, while the smaller one, the manufacture of communication equipment went up by 25.7%.

The manufacture of food products, beverages and tobacco products having the third greatest weight (accounting for 10% of manufacturing) rose by 6.3%, due to a recovery in both domestic and export sales. Volume increases (between 1.9 and 36%) were measured in six of the ten groups of the subsection, while decreases of 0.9 to 17.6% were recorded in the other four. The largest group (representing 26% of the subsection), the processing and preserving of meat and the production of meat products rose by 12.2%, while the manufacture of prepared animal feeds (having a 13% share in the output of the subsection) grew the most, by 36%.

For the first time this year an increase was recorded in the manufacture of machinery and equipment n.e.c having medium weight, mainly owing to a favourable tendency in export sales. The output went up by 12%.

So far, the largest growth rate (16.9%) in 2016 has been measured in the manufacture of basic metals and fabricated metal products representing medium weight, too. The volume of production increased in the decisive majority of classes in the subsection.

The manufacture of coke, and refined petroleum products having smaller weight grew by 8.3%, as a result of a recovery in domestic sales, export sales dropped.

The growth continued in two subsections also representing smaller weight: output rose by 13.2% in the manufacture of paper and paper products; printing and reproduction of recorded media and by 11.7% in other manufacturing, and repair and installation of machinery and equipment. The largest class of this latter subsection, the manufacture of medical and dental instruments and supplies (accounting for one third) went up by 19.4%

Out of the subsections only the manufacture of textiles, wearing apparel, leather and related products giving the smallest weight declined (by 0.2%).

Significant subsections of manufacturing, May 2016

Subsections Volume indices of production, corresponding period of previous year = 100.0 Share of subsection within manufacturing at current prices, %
code denomination
CAManufacture of food products, beverages and tobacco products106.310.3
CGManufacture of rubber and plastics products, and other non-metallic mineral products110.88.3
CHManufacture of basic metals and fabricated metal products, except machinery and equipment116.97.7
CIManufacture of computer, electronic and optical products117.211.2
CKManufacture of machinery and equipment n.e.c.112.06.5
CLManufacture of transport equipment106.930.5

Total new orders in the observed subsections of manufacturing increased by 1.2%, within this the volume of new domestic orders rose by 6.6% and that of new export orders by 0.4%. The volume of total stock of orders was above the level of May 2015 by 5.7%.

In January–May 2016, compared to the same period of the previous year:

Industrial production rose by 3.0%. The volume of export sales representing 65% of all sales grew by 3.6%, while that of domestic sales accounting for 35% of all sales decreased by 0.3%.

The labour productivity of industrial enterprises with 5 or more employees rose by 0.5% along with a 3.0% increase in the number of employees.

Out of the territorial units of Hungary, industrial production decreased in two regions, in Western Transdanubia (2.3%), and Central Hungary (0.7%) In the other five regions, volume increases of 1.3% to 17.4% were recorded, the highest growth was observed in Southern Transdanubia.