Published on: 11 September 2020

Industrial production decreased by 8.1%

In July 2020 the volume of industrial production declined by 8.1% year-on-year. The degree of fall was 28.8 percentage point lesser than the nadir of April. Based on working-day adjusted data, production dropped by 7.7%. The effects of the altered economic processes caused by the coronavirus epidemic were still perceptible in this period.

In July 2020:

The volume of industrial production decreased by 8.1% compared to the same period of the previous year. (Compared to the July data published in the first estimate, the data in the second estimate did not change.)

Industrial output in July – according to seasonally and working-day adjusted indices – was 7.2% above the level of the previous month, and it grew by 46% compared to April.

The volume of industrial export declined 6.9% year-on-year. Transport equipment export, representing a 35% weight within export sales in manufacturing fell by 11.7%, while the export in manufacture of computer, electronic and optical products accounting for a 15% weight grew by 5.5%.

Industrial domestic sales decreased by 8.3%, within it domestic sales in manufacturing were 11.4% lower compared to the same month of the previous year.

Within industry, production fell by 8.0% in the decisive weight (96%) representing manufacturing, and it dropped by 31% in the small weight representing mining and quarrying. The output of energy industry (electricity, gas, steam and air-conditioning supply) declined by 4.1%.

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 year87.788.289.687.773.3

The production volume decreased in the majority of the manufacturing subsections. The manufacture of transport equipment representing approximately 29% of the manufacturing output (having the largest weight) declined by 13.2% year-on-year. The volume of motor vehicles manufacturing dropped by 16.9%, the manufacture of parts and accessories for motor vehicles fell by 10.8%.

The manufacture of computer, electronic and optical products accounting for 12% of manufacturing grew by 2.3%. Out of the two largest groups the more significant one, the manufacture of electronic components and boards went up by 52%, while the smaller weight carrying one, the manufacture of consumer electronics increased by 14.1%. At the same time the manufacture of communication equipment dropped by 68%.

The manufacture of food products, beverages and tobacco products having more than a 12% share in manufacturing declined by 0.3% compared to the same month of the previous year, as a result of an increase in export sales and a decrease in domestic sales. The processing and preserving meat and the production of meat products representing the largest weight (23%) dropped by 8.7%, while the manufacture of beverages, the second most significant group fell by 7.7%. The production of groups representing the smallest weight grew the most: the processing and preserving of fish, crustaceans and molluscs went up by 82%, the manufacture of tobacco products increased by 37%. The manufacture of vegetable and animal oils and fats rose significantly,too: by 26%.

The manufacture of electrical equipment having a smaller weight grew by 1.6%, primarily as a result of an expansion in the manufacture of batteries and accumulators connected with the manufacture of transport equipment.

An increase was measured in the manufacture of chemicals and chemical products after a nineteen-month long decline. The July output went up by 6.7%, mainly due to the manufacture of plastics in primary forms.

Out of the medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products decreased by 10.6%, the manufacture of basic metals and fabricated metal products dropped (to the highest degree among the subsections) by 23% year-on-year.

Changes in production in the major subsections of manufacturing, July 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 products99.712.3
CGManufacture of rubber and plastics products, and other non-metallic mineral products89.49.1
CHManufacture of basic metals and fabricated metal products, except machinery and equipment77.27.3
CIManufacture of computer, electronic and optical products102.311.8
CJManufacture of electrical equipment101.65.9
CLManufacture of transport equipment86.828.7

Out of all regions industrial production grew year-on-year in the Northern Great Plain only (by 5.2%). The largest drop (12.9%) was recorded in Western Transdanubia, in the other regions volume decreases between 2.0% and 11.9% were recorded.

Total new orders volume in the observed divisions of manufacturing declined by 5.9% compared to July 2019. New domestic orders decreased by 4.7%, new export orders fell by 6.1%. The total stock of orders at the end of July was above the previous year’s level by 0.8%.

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

Industrial production dropped by 12.1%. The volume of export sales representing 63% of all sales fell by 12.6%, while domestic sales accounting for 37% of all sales declined 7.8%.

Industrial production rose only in the Northern Great Plain (by 1.5%). In the other regions volume decreases between 3.8 % and 20.2% were recorded, the largest one in Western Transdanubia.