In the 2nd quarter of 2023 investments decreased by 13.5%, while the manufacturing industry registered a 7.7% growth
In the 2nd quarter of 2023 the volume of investments decreased by 13.5% compared to the same period of the previous year, and lessened by 4.1% compared to the previous quarter (seasonally adjusted). Most sections of the national economy contributed to the general decrease of investments. Investment performance increased only in manufacturing as well as in a few, overall relatively small weight representing fields. In addition to the more restrained investment performance of enterprises with foreign interests, state-owned companies also moderated their developments, in the case of the latter, mainly the lower current period related expenses on EU-funded projects led to a decrease in investments.
In the 2nd quarter of 2023, seasonally adjusted:
The seasonally adjusted volume of the national economy’s investments decreased by 4.1% compared to the previous quarter. Within it the seasonally adjusted volume of construction investments lessened by 7.2%, while investments in machinery and equipment decreased by 3.9%.
In the 2nd quarter of 2023 compared to the same period of the previous year:
The volume of the investment activity lessened by 13.5%. Within it, construction investments, representing more than one-half of the total volume of investments decreased by 24%, at the same time investments in machinery and equipment, representing 45% of the total value of investments grew by 4.0%. The latter is primarily due to the 6.9% volume increase of imported machinery and vehicles.
The volume of investment in the case of enterprises employing at least 50 people, realising 54% of the investment performance decreased by 10%, in the case of budgetary units1, realising 12% of investments, developments fell back by 18%, partially as a result of the smaller volume of implemented EU-financed projects in the current quarter. The volume of other investments (enterprises with fewer than 50 employees, individual enterprises, non-profit ones as well as households) was below the one year ago level by 17%.
In the current period, the performance value of investments fell in fifteen out of nineteen sections of the national economy. Developments of manufacturing, the investor representing the largest weight, accounting for about one third of developments of the national economy, increased in the current quarter by +7.7%. The volume of investments in the manufacture of electrical equipment, having the largest share, grew at double-digit rates, but at a more subdued pace than in the previous periods, mainly due to the gradual winding down of large-scale projects going on for a longer time. At the same time, the volume of investments in transport equipment production, representing the second largest weight, grew very dynamically, assisted by the developments in several domestic transport equipment manufacturing and supply factories, some of these being capacity expanding projects. Investment performance increased also in the subsections of the pharmaceutical industry, in other manufacturing, as well as in coke production and petroleum refining, while all other subsections decreased in varying degrees.
The investment performance of real estate activities, the second largest investor, accounting for 19% of developments in the national economy fell by 21% compared to the same period of the previous year. The volume change was determined by two processes: the closure of the vigorous office building construction projects characterising the base period and the decrease in the house building construction and real estate renovations in the current period.
The investment volume in transportation and storage, in contrast to the growth during the 1st quarter of 2023, fell considerably (-29%), mainly due to the lessening in state infrastructural developments.
Investment performance in agriculture fell by 14%, as farmers cut development spending back on both construction and on imported machinery and vehicles.
Developments in the energy industries decreased in real value by around 1.5%, while current price data showed a slight increase for almost all major suppliers.
Investment outlay of the national economy*
| Section | Quarter 2 of 2023 | First half of 2023 | ||
|---|---|---|---|---|
| at current prices, billion HUF | volume change, compared to the corresponding period of the previous year, % | at current prices, billion HUF | volume change, compared to the corresponding period of the previous year, % | |
| Total | 3 542 | -13.5 | 6 434 | -9.6 |
| Of which*: | ||||
| manufacturing | 1 187 | 7.7 | 2 102 | 11.6 |
| real estate activities | 675 | -21.4 | 1 348 | -15.2 |
| transportation and storage | 399 | -29.3 | 680 | -17.1 |
| wholesale and retail trade | 203 | -6.4 | 365 | -4.8 |
| agriculture | 167 | -14.4 | 326 | -4.6 |
| energy industry | 124 | -1.5 | 200 | 5.9 |
* Data of the six largest weight carrying sections, based on investment performance of the given quarter.
The 13.5% volume decrease of the national economy’s investments in the 2nd quarter of 2023 was partially offset by the manufacturing industry (by 2.1 percentage points). Furthermore, the reduction in investment performance in real estate activities, transportation and storage, wholesale and retail trade and agriculture, all contributed to the lower volume (by –4.5; –4.0; –0.3; –0.7 percentage points).