Published on: 13 August 2019

Industrial production decreased by 1.4%

In June 2019 the volume of industrial output declined by 1.4% year-on-year. Based on working-day adjusted data production grew by 4.1%. Compared to raw data, the significant difference is due to the fact that there were two working days less in June 2019 than in June 2018.

In June 2019:

The volume of industrial production dropped by 1.4% year-on-year. (Compared to the June 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 below the previous month’s level by 1.8%.

The volume of industrial export grew by 0.2% year-on-year. Within export sales in manufacturing, the 37% representing transport equipment export went up by 3.1%, the export in manufacture of computer, electronic and optical products accounting for a 15% weight dropped by 2.5%.

Industrial domestic sales increased by 2.6%, within it domestic sales in manufacturing were 0.8% higher compared to the same month of the previous year.

Within industry, production slackened by 2.3% in the decisive weight (96%) representing manufacturing, and it went up by 25% in the small weight representing mining and quarrying. The output of energy industry (electricity, gas, steam and air-conditioning supply) rose by 5.7%.

Changes in the production and sales of manufacturing


Period Production Total Domestic Export Share of export in sales at current prices
Volume index, corresponding period of previous year = 100.0
From the beginning of the year105.2105.8107.6105.173.2

The rate of growth slowed down in the largest weight representing manufacture of transport equipment accounting for 30% of manufacturing: output increased only by 1.5% compared the same month of the previous year. The manufacture of motor vehicles rose by 3.6%, while the manufacture of parts and accessories for motor vehicles went up by 0.7%. The lower performance level of the transport industry is also reflected in its new-orders indicators.

The manufacture of computer, electronic and optical products representing almost 12% of manufacturing declined by 3.0%. Out of the most significant groups the manufacture of consumer electronics grew by 17.2%, at the same time the manufacture of communication equipment fell by 7.7%, that of manufacture of electronic components and boards dropped by 5.8%.

The manufacture of food products, beverages and tobacco products providing nearly 11% of manufacturing rose by 0.9% year-on-year, primarily due to a growth in domestic sales; at the same time export sales dropped. The processing and preserving meat and the production of meat products, representing the largest weight (25%) went up by 1.2%, within it the manufacture of vegetable and animal oils and fats increased the most, by 40%. Decreases were recorded in seven groups: out of these the small weight carrying manufacture of tobacco products dropped at the highest rate, by 23%.

The volume of production decreased for the first time this year in the medium-weight representing subsections: the manufacture of rubber and plastics products, and other non-metallic mineral products declined by 1.6%, the manufacture of basic metals and fabricated metal products fell by 10.3%.

Contrary to the remarkable growth in the previous month the manufacture of machinery and equipment n.e.c. was 5.5% lower than a year ago (sales from stock occurred primarily).

The declining tendency continued in the manufacture of chemicals and chemical products: output dropped in June by 9.7% year-on-year, mainly owing to a fall in the significant weight carrying manufacture of plastics in primary forms.

The manufacture of textiles, wearing apparel, leather and related products representing the smallest weight fell the most, by 13.8%; sales decreased in both sales directions.

Changes in production in the major subsections of manufacturing, June 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 products100.910.7
CGManufacture of rubber and plastics products, and other non-metallic mineral products98.49.2
CHManufacture of basic metals and fabricated metal products, except machinery and equipment89.78.0
CIManufacture of computer, electronic and optical products97.011.8
CKManufacture of machinery and equipment n.e.c.94.55.6
CLManufacture of transport equipment101.529.5

Out of the territorial units of Hungary, industrial production grew in three regions: in Budapest region (1.7%), in Pest region (1.6%), as well as in the Northern Great Plain (0.3%). In the other five regions, volume decreases between 0.9% and 6.7% were recorded, the highest fall was observed in Northern Hungary.

Total new orders volume in the observed subsections of manufacturing fell by 11.9% compared to the June 2018 data. New domestic orders volume decreased by 4.6%, new export orders dropped by 13%. The volume of total stock of orders at the end of June was above the previous year’s level by 2.8%.

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

Industrial production rose by 5.4%. The volume of export sales representing 64% of all sales went up by 5.8%, domestic sales accounting for 36% of all sales grew by 6.4%.

Out of all regions industrial production declined year-on-year only in Northern Hungary (by 0.1%). The largest volume growth (9.7%), was measured in Pest region, in the others volume increases between 3.0% and 8.9% were recorded.