Published on: 14 July 2020

Industrial production decreased by 30.7%

In May 2020 the volume of industrial production lagged behind the high base of the previous year by 30.7%. Based on working-day adjusted data, production fell by 27.6%. The effects of the economic processes altered by the coronavirus epidemic were significant in this period, too. An outstanding fall was observed in the largest weight representing manufacture of transport equipment, while the manufacture of computer, electronic and optical products, as well as the manufacture of food products, beverages and tobacco products declined to a lesser degree.

In May 2020:

The volume of industrial production decreased by 30.7% compared to the same period of the previous year. (Compared to the May data published in the first estimate, the data in the second estimate did not change.)

Industrial output in May – according to seasonally and working-day adjusted indices – was 15.6% above the level of the previous month.

The volume of industrial export dropped by 32% year-on-year. Transport equipment export, representing a 27% weight within export sales in manufacturing fell outstandingly, by 51%, while the export in manufacture of computer, electronic and optical products accounting for a 17% weight declined by 18.3%.

Industrial domestic sales decreased by 19.7%, within it domestic sales in manufacturing were 24% lower compared to the same month of the previous year.

Within industry production fell by 32% in the decisive weight (95%) representing manufacturing, and it dropped by 18.5% in the small weight representing mining and quarrying. The output of energy industry (electricity, gas, steam and air-conditioning supply) declined by 6.2%.

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
2018103.5103.2109.2101.172.9
2019105.5106.3106.7106.272.4
2020January103.5102.795.7105.175.9
February104.1104.299.9105.675.6
March94.393.298.191.673.1
April61.861.374.756.367.3
May68.470.276.168.171.5
From the beginning of the year85.885.988.584.973.2

The production volume decreased in every manufacturing subsection. The manufacture of transport equipment representing 21% of the manufacturing output (having the largest weight) decreased at the highest rate, by 53% year-on-year. The volume of motor vehicles manufacturing dropped by 55%, the manufacture of parts and accessories for motor vehicles fell by 54%.

The manufacture of computer, electronic and optical products accounting for 13% of manufacturing declined by 21%. Out of the two largest groups the more significant one, the manufacture of electronic components and boards rose by 22%, at the same time the smaller weight carrying one, the manufacture of consumer electronics decreased by 25%.

The manufacture of food products, beverages and tobacco products having a 13% share in manufacturing was less affected by the epidemic. The volume of production was 12.0% lower compared to the same month of the previous year, with decreases measured in both sales directions. The processing and preserving meat and the production of meat products representing the largest weight (23%) fell by 19.5%, the manufacture of beverages, the second most significant group dropped by 10.1%. Production grew in three groups altogether. Out of the two smallest weight carrying ones, the processing and preserving of fish, crustaceans and molluscs went up by 12.9, the manufacture of tobacco products increased by 5.6%, while the manufacture of vegetable and animal oils and fats, having a greater weight, rose by 9.8%.

Out of the medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products decreased by 27%, the manufacture of basic metals and fabricated metal products dropped by 33% year-on-year.

The manufacture of basic pharmaceutical products and pharmaceutical preparations declined in the smallest proportion, by 3.4%, herein an increase was measured in the previous month.

Changes in production in the major subsections of manufacturing, May 2020

(%)

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 products88.013.3
CGManufacture of rubber and plastics products, and other non-metallic mineral products72.59.9
CHManufacture of basic metals and fabricated metal products, except machinery and equipment66.68.5
CIManufacture of computer, electronic and optical products78.812.7
CJManufacture of electrical equipment94.96.5
CLManufacture of transport equipment46.721.4

Industrial production fell in every region compared to the same month of the previous year. The largest volume decrease (44%) was recorded in Western Transdanubia, volume declines were measured between 10.8 and 36% in all the others.

Total new orders volume in the observed divisions of manufacturing fell by 38% compared to May 2019. New domestic orders declined by 30%, new export orders dropped by 39%. The total stock of orders at the end of May was below the previous year’s level by 8.5%.

In January–May 2020, compared to the same period of the previous year:

Industrial production dropped by 13.8%. The volume of export sales representing 63% of all sales fell by 15%, while domestic sales accounting for 37% of all sales declined 8.7%.

Industrial production declined in every region between 0.1% and 24%. The largest fall was in Western Transdanubia.