In the 3rd quarter of 2023 investments decreased by 12.1%, along with the 6.3% increase of developments in the manufacturing industry
In the 3rd quarter of 2023 the volume of investments decreased by 12.1% compared to the same period of the previous year, and lessened by 2.2% compared to the previous quarter (seasonally adjusted). Most sections of the national economy contributed to the general investment decrease. Investment performance increased only in manufacturing, in the public administration section, as well as in a few, overall relatively small weight representing fields.
In the 3rd quarter of 2023, seasonally adjusted:
The seasonally adjusted volume of the national economy’s investments decreased by 2.2% compared to the previous quarter. Within it the volume of construction investments lessened by 2.4%, while investments in machinery and equipment grew by 0.7% compared to the level of the previous quarter.
In the 3rd quarter of 2023 compared to the same period of the previous year:
The volume of the investment activity lessened by 12.1%. Within it, construction investments, representing about 60% of the total volume of investments decreased by 22%, at the same time investments in machinery and equipment, representing 40% of the total value of investments grew by 6.8%. The latter is primarily due to the 7.8% volume increase in imported machinery and vehicles.
The volume of investment in the case of enterprises employing at least 50 people, realising 55% of the investment performance decreased by 9.1%, in the case of budgetary units, realising 15% of investments, developments grew by 10% then the level of previous year, owing primarily to technical reasons1. 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 earlier level by 24%.
In the current period, the performance value of investments fell in thirteen out of nineteen sectors of the national economy. Growth dynamics of manufacturing, representing the largest weight, accounting for almost one third of investments in the national economy, slowed in the past quarters; developments increased by 6.3% during the current quarter. This is mainly explained by the single-digit growth of the investment volume in the manufacture of electrical equipment, having the largest share, which grew 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, developments in several domestic transport equipment manufacturing and supply factories, some of these being capacity expanding projects, contributed to this trend. Growth was also recorded in investment within the subsections of rubber, plastics and building materials industries, electronics industry, and machinery and equipment manufacturing, while several other subsections decreased in varying degrees.
The investment performance of real estate activities, the second largest investor, accounting for 18% of developments in the national economy fell significantly, by 29% compared to the same period of the previous year. The volume change was determined mainly by the decrease in the house building construction and real estate renovations in the current period.
The investment volumes in transportation and storage fell by 27%, a somewhat more subdued pace than in the previous quarter, this unfavourable performance is still mainly due to the lessening in state infrastructural developments.
The reason of the 11% volume decrease in wholesale and retail trade was – among others – the decrease in the investment activity of the enterprises active in retail trade in the current period, as these stimulated the growth in the same period of the previous year.
Investment performance in agriculture fell by 21%, as farmers cut back on development spending in both construction, and, to a lesser extent, in imported machinery.
The section of public administration increased the volume of investments by 9.3% due to the expanding developments in central public administrations.
Investment outlay of the national economy*
| Section | Quarter 3 of 2023 | Quarter 1-3 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 | 3 781 | -12.1 | 10 215 | -10.6 |
| Of which*: | ||||
| manufacturing | 1 202 | 6.3 | 3 304 | 9.6 |
| real estate activities | 668 | -28.9 | 2 016 | -20.2 |
| transportation and storage | 465 | -27.2 | 1 144 | -21.5 |
| wholesale and retail trade | 206 | -10.6 | 571 | -7.0 |
| agriculture | 167 | -20.8 | 493 | -10.8 |
| public administration | 156 | 9.3 | 335 | -14.1 |
* Data of the six largest weight carrying sections, based on investment performance of the given quarter.
The 12.1% volume decrease of the national economy’s investments in the 3rd quarter of 2023 was partially offset by the manufacturing industry and public administration (by 1.7 and 0.3 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 –6.3, –4.0, –0.6, –1.0 percentage points).