Published on: 12 July 2018

Industrial production increased by 0.4%

In May 2018, the volume of industrial output grew by 0.4% year-on-year. Based on working-day adjusted data, the production rose by 3.8%.

In May 2018:

The volume of industrial production increased by 0.4% year-on-year. (Compared to the May data published in the first estimate, there is no change in the data of the second estimate.)

Industrial output – according to the seasonally and working-day adjusted index – was above the previous month’s level by 1.9%.

The volume of industrial export declined by 2.0% year-on-year. Within export sales in manufacturing, the 35% representing transport equipment export fell by 10.2%. At the same time in the manufacture of computer, electronic and optical products, accounting for 15% of manufacturing export, volume increased by 5.7%.

Industrial domestic sales grew by 2.9%, within this, the domestic sales of manufacturing were 7.1% higher compared to the same month of the previous year.

Within industry, production went up by 0.6% in manufacturing – representing a decisive weight (96%) while it rose by 38% in the small weight representing mining and quarrying. The output of energy industry (electricity, gas, steam and air-conditioning supply) dropped by 8.9%,

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
2016101.4101.4101.8101.375.1
2017104.9104.4103.5104.774.6
2018January108.3108.7116.6106.375.1
February103.8103.8113.8100.874.8
March97.097.0103.195.074.3
April108.1108.9111.3108.073.5
May100.699.7107.197.172.8
From the beginning of the year103.3103.2109.9101.174.1

Production declined in six of the thirteen subsections of manufacturing, volume increases of 3.0 to 16.3% were measured in the other subsections compared to the same month of the previous year.

The production of transport equipment representing 28% of manufacturing output decreased year-on-year by 5.2%. The lower performance level of the subsection was also reflected in the orders. The manufacture of parts and accessories for motor vehicles rose by 1.0%, whereas the manufacture of motor vehicles fell by 11.7%.

The manufacture of computer, electronic and optical products accounting for 11% of manufacturing grew by 4.9%. Out of the two dominant groups the manufacture of communication equipment increased outstandingly by 53%, while the manufacture of consumer electronics declined by 3.9%.

The manufacture of food products, beverages and tobacco products giving 10% of manufacturing went up by 4.8% compared to the previous year’s same month, first of all due to an increase in domestic sales giving 62% of all sales, while export stagnated. Out of the groups, the largest one, the processing and preserving meat and the production of meat products (representing 26% of the subsection) rose by 5.9%, Decreases were recorded in three groups: the manufacture of dairy products fell at the highest rate of 6.5% year-on-year.

The manufacture of chemicals and chemical products grew the most by 16.3%, mainly owing to the manufacture of plastics in primary forms which represents more than a two-third weight.

The increase of production continued in the medium-weight representing subsections. In May the manufacture of rubber and plastics products, and other non-metallic mineral products rose by 11.8%, while the manufacture of basic metals and fabricated metal products went up by 9.9% year-on-year.

The production declined in every month of the year so far in the manufacture of machinery and equipment n.e.c accounting for 5.5% of the manufacturing: output dropped by 20% in May year-on-year, primarily due to a significant fall in the manufacture of engines and turbines, except aircraft, vehicle and cycle engines this having the largest weight of classes.

Changes in production in the major subsections of manufacturing, May 2018

(%)

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 products104.810.1
CGManufacture of rubber and plastics products, and other non-metallic mineral products111.89.0
CHManufacture of basic metals and fabricated metal products, except machinery and equipment109.99.0
CIManufacture of computer, electronic and optical products104.911.2
CKManufacture of machinery and equipment n.e.c.79.95.5
CLManufacture of transport equipment94.828.4

By a 3.4% increase in the number of employees, the labour productivity of industrial enterprises with 5 or more employees was 2.9% lower in May than in the same month of the previous year.

Industrial production decreased in two regions: in Western Transdanubia (by 2.7%), and in Southern Transdanubia (by 6.4%) and stagnated in the Northern Great Plain. Volume increases of 2.3% to 5.7% were recorded in the other regions, the highest growth was observed in Pest region.

Total new orders volume in the observed subsections of manufacturing grew by 3.2% compared to the May 2017 data. New domestic orders volume rose by 0.1%, while new export orders went up by 3.7%. The volume of total stock of orders was below the level of May 2017 by 6.2%.

In January–May 2018, compared to the same period of the previous year:

Industrial production increased by 3.1%. The volume of export sales representing 64% of all sales went up by 1.1%, while that of domestic sales accounting for 36% of all sales rose by 5.3%.

The labour productivity of industrial enterprises with 5 or more employees declined by 0.7% along with a 3.7% increase in the number of employees

Industrial production grew year-on-year in every region. The largest volume growth (7.6%), was measured in Southern Transdanubia having the smallest weight, we measured volume increases between 0.3% and 7.4% in the other regions.