Published on: 12 July 2019

Industrial production increased by 8.7%

In May 2019, the volume of industrial output grew by 8.7% year-on-year. Based on working-day adjusted data production rose by 6.1%.

In May 2019:

The volume of industrial production rose by 8.7% year-on-year. (Compared to the May data of the first estimate, the data in the second estimate did not change.)

Industrial output – according to the seasonally and working-day adjusted index – was above the previous month’s level by 1.4%.

The volume of industrial export grew by 8,8% year-on-year. Within export sales in manufacturing, the 37% representing transport equipment export went up by 17%, while the export in manufacture of computer, electronic and optical products accounting for 15% weight rose by 5.1%.

Industrial domestic sales increased by 9.2%, within it domestic sales in manufacturing were 7.5% higher compared to the same month of the previous year.

Within industry, production grew by 8.7% in the decisive weight (96%) representing manufacturing, and it went up by 15.2% in the small weight representing mining and quarrying. The output of energy industry (electricity, gas, steam and air-conditioning supply) rose by 10.4%, mainly as a result of the cooler weather compared to the previous year (according to the Hungarian Meteorological Service the May 2019 average temperature was 5.5 (C lower than the May 2018 average).

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
2017104.6104.0102.9104.474.7
2018103.7103.4110.6100.972.6
2019January103.6106.3107.9105.874.7
February106.5107.4107.4107.474.4
March107.8108.1108.5107.973.6
April106.0105.6111.2103.571.5
May108.7108.0107.5108.272.5
From the beginning of the year106.6107.1108.5106.673.3

The manufacture of transport equipment accounting for 30% of manufacturing output grew by 17.2% year-on-year. The manufacture of motor vehicles rose by 20.9%, while the manufacture of parts and accessories for motor vehicles went up by 12.9%. The higher performance level of the transport industry is also reflected in its orders indicators.

The manufacture of computer, electronic and optical products representing 11% of manufacturing increased by 6.6%. Out of the two most significant groups the manufacture of consumer electronics grew by 25%, at the same time the manufacture of communication equipment dropped by 2.7%.

The manufacture of food products, beverages and tobacco products providing 10% of manufacturing rose by 5.4% compared to the same month of the previous year, mainly due to a growth in export sales; domestic sales dropped. The processing and preserving meat and the production of meat products, representing the largest weight (26%) went up by 3.1%, while the manufacture of beverages having the second largest weight declined by 1.8%, owing to the relatively cold May weather. Above this decreases were recorded in two groups: in manufacture of bakery and farinaceous products (0.7%), and in that of the smallest weight carrying manufacture of tobacco products (5.2%).

The other manufacturing, and repair and installation of machinery and equipment giving little weight (giving 3.2%) grew at the highest rate among the subsections by 18.6%, increases were measured in the great majority of classes.

Manufacture of coke, and refined petroleum products rose by 5.4% as a result of a favourable tendency in both domestic and export sales.

Production growth continued in the medium-weight representing subsections: the manufacture of rubber and plastics products, and other non-metallic mineral products went up by 7.6%, whilst the manufacture of basic metals and fabricated metal products rose by 1.3% year-on-year.

Output fell only in two subsections: in the manufacture of textiles, wearing apparel, leather and related products (4.4%) representing the smallest weight, as well as in that of chemicals and chemical products (7.7%). In case of the latter one the drop was primarily caused by manufacture of plastics in primary forms.

Changes in production in the major subsections of manufacturing, May 2019

(%)

Subsections Volume indices of production, corresponding period of the previous year = 100.0 Share of subsection within manufacturing at current prices
code denomination
CAManufacture of food products, beverages and tobacco products105.410.1
CGManufacture of rubber and plastics products, and other non-metallic mineral products107.69.1
CHManufacture of basic metals and fabricated metal products, except machinery and equipment101.38.4
CIManufacture of computer, electronic and optical products106.611.0
CKManufacture of machinery and equipment n.e.c.108.65.5
CLManufacture of transport equipment117.230.1

Industrial production grew in every region compared to the same month of previous year. The largest volume growth (14.4%) was recorded in Pest region; we measured volume increases between 0.9 and 14.2% in the others.

Total new orders volume in the observed subsections of manufacturing rose by 2.8% compared to the May 2018 data. New domestic orders volume increased by 3.9%, new export orders went up by 2.6%. The volume of total stock of orders at the end of May was above the previous year’s level by 7.1%.

In January–May 2019, compared to the same period of the previous year:

Industrial production rose by 6.7%. The volume of export sales representing 63% of all sales went up by 7.2%, domestic sales accounting for 37% of all sales grew by 6.9%.

Industrial production rose in every region of Hungary, the largest volume growth was measured in Budapest region (11.1%), the lowest in Northern Hungary (1.6%).