Published on: 14 February 2017

Industrial production decreased by 0.5% in December

In December 2016, industrial output declined by 0.5% year-on-year. Adjusted for working days, the production rose by 1.9%. In 2016, the volume of production increased by 0.9% compared to 2015.

In December 2016:

The volume of industrial production dropped by 0.5% year-on-year. (Compared to the data of December published in the first estimate, there was no change in the data of the second estimate.)

Industrial output in December – according to seasonally and working-day adjusted indices – was above the level of the previous month by 0.5%.

The volume of industrial export sales fell by 4.2% compared to the same period of the previous year. Out of the two manufacturing subsections accounting for 46% of export sales, the export of transport equipment, representing 30% of manufacturing exports, declined by 6.0%. However, in the manufacture of computer, electronic and optical products – the other significant subsection giving 16% of manufacturing exports –, the export volume increased by 4.0%.

Industrial domestic sales rose by 3.9%, within this, the domestic sales of manufacturing were 2.2% higher year-on-year.

Out of the sections of industry, production practically stagnated (+0.1%) in manufacturing representing a decisive weight (94%) and fell by 10.6% in mining and quarrying (having little weight) compared to December 2015. The output of energy industry (electricity, gas, steam and air-conditioning supply) declined by 1.5%.

Changes in the 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
2015108.0108.2106.7108.774.9
2016January100.1100.698.0101.477.3
February107.4109.1107.9109.577.4
March94.694.997.094.276.3
April105.5105.7104.6106.175.9
May109.6108.8110.9108.174.9
June99.899.3101.098.875.6
July95.395.495.695.374.2
August111.9111.6112.4111.473.0
September96.296.696.396.775.5
October98.796.894.897.575.2
November101.7102.7102.8102.774.5
December100.199.3102.298.271.4
From the beginning of the year101.4101.4101.7101.375.1

Production declined in only two of the thirteen subsections of manufacturing and volume increases of 1.3 to 18.1% 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 24% of the manufacturing output fell by 6.9%. Out of the two major groups – giving a combined share of 96% in the output of the subsection – the manufacture of motor vehicles dropped remarkably, by 10.9%, while the manufacture of parts and accessories for motor vehicles declined less, by 1.9%.

The manufacture of food products, beverages and tobacco products ranked second in manufacturing (accounting for more than 12% of manufacturing) went up by 1.9%. Volume increases of 0.4 and 32% were measured in five of the ten groups of the subsection, while decreases of 1.4 to 22% were recorded in the other five. The largest group (representing 24% of the subsection), the processing and preserving of meat and the production of meat products fell by 1.4%, at the same time the manufacture of prepared animal feeds rose the most year-on-year, by 32%.

The manufacture of computer, electronic and optical products having the third greatest weight (giving 12% in manufacturing) grew by 3.4% year-on-year among the subsections. Out of the two dominant groups, the larger one, the manufacture of communication equipment rose by 15.1%, while the smaller one, the manufacture of electronic components and boards went up by 14.0%.

The manufacture of chemicals and chemical products representing medium weight grew at the highest rate of 18.1% among the subsections, first of all owing to the performance of manufacture of plastics in primary forms.

Remarkable growth was also recorded in the other two subsections with medium weight: the manufacture of basic metals and fabricated metal products rose by 9.5%, while the manufacture of rubber and plastics products, and other non-metallic mineral products went up by 4.2% year-on-year.

After a four month fall, the manufacture of coke, and refined petroleum products increased by 15.5% in volume, mainly due to a significant upswing in the exports of this subsection.

The production rose in every month of this year in the manufacture of wood and paper products, and printing – by 6.1% in December –, due to a recovery in both domestic and export sales.

The manufacture of machinery and equipment n.e.c. dropped at the highest rate of 21% year-on-year among the subsections, owing to a considerable fall in export demand.

Significant subsections of manufacturing, December 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 products101.912.2
CGManufacture of rubber and plastics products, and other non-metallic mineral products104.27.1
CHManufacture of basic metals and fabricated metal products, except machinery and equipment109.57.3
CIManufacture of computer, electronic and optical products103.411.9
CKManufacture of machinery and equipment n.e.c.78.98.8
CLManufacture of transport equipment93.123.9

Total new orders in the observed subsections of manufacturing declined by 2.1% compared to the same month of 2015. The volume of new domestic orders increased by 2.8%, while that of new export orders dropped by 2.5%. The volume of total stock of orders was above the level of December 2015 by 3.2%.

In 2016, compared to the previous year:

In 2016, industrial production rose by 0.9%, following the previous year's 7.4% increase. Within this, out of the three sections output stagnated in energy industry and fell by 19.7% in mining and quarrying compared to 2015.

The volume of manufacturing output grew year-on-year by 1.4%. The level of production, which amounted to more than HUF 26 thousand billion, exceeded the level of the previous year in seven months, at the highest rate in August (11.9%). Increases were recorded in eight of the thirteen subsections of manufacturing. Out of the three greatest subsections, production in the manufacture of transport equipment, which is considered to be the most significant, grew by only 0.3% (there were decreases in the last four months of the year), while the output of computer, electronic and optical products rose the most by 9.3%. The manufacture of food products, beverages and tobacco products was characterized by a moderate growth (1.4%), there was an increase in both sales directions.

Industrial export sales grew year-on-year by 0.4% (In 2015, we measured a 9.8% volume expansion). Exports accounted for 65% of total industrial sales and for 75% of manufacturing sales. Manufacturing exports went up by 1.3% compared with a year earlier. Two manufacturing subsections gave more than half of all export sales. The export volume of transport equipment representing 37% of manufacturing exports increased by 0.6%. The second largest subsection, the manufacture of computer, electronic and optical products rose at the highest rate of 8.6% in export volume among the subsections (showing decreases in export volume only in two months).

Industrial domestic sales declined by 1.2% compared to 2015, however, within this the domestic sales of manufacturing grew by 1.7%. Domestic sales went up by 1.6% in the manufacture of food products, beverages and tobacco products accounting for 26% of domestic manufacturing sales. The growth continued in domestic sales of the manufacture of basic metals and fabricated metal products accounting for 12% of domestic manufacturing (second largest subsection): the volume increased by 8.4%.

The labour productivity of industrial enterprises with 5 or more employees declined by 1.2% along with a 2.6% increase in the number of employees.

Out of the territorial units of Hungary, industrial production fell in three regions – in Western Transdanubia (4.1%), Central Hungary (3.7%), as well as in Northern Great Plain (2.3%) – compared to 2015. In the other four regions, volume increases of 2.1% to 15.4% were recorded, the highest growth was observed in Southern Transdanubia, having small weight.