Automotive sector drags down June industrial output

Automotive

Year-on-year output of Hungaryʼs automotive sector, a key engine of industrial growth in Hungary, slowed to 1.5% in June from 17.6% in the previous month, a second reading of industrial production data released by the Central Statistical Office (KSH) on Tuesday shows.   

Overall industrial output fell 1.4% year-on-year in June, while working day-adjusted output was up 4.1%, the KSH reported, confirming the figures released in a first reading on August 7, and stressing again that the difference between the two figures is due to the two fewer working days this June than in the base period.

In the first four months of the year, growth in automotive sector output - which accounts for nearly 30% of Hungaryʼs overall manufacturing output -ranged between 5.7% and 12.9%.

Output of the computer, electronics and optical equipment sector, which accounts for around 12% of manufacturing output, fell 3.0% in June, after growing 6.4% in the previous month. 

Output of food, drink and tobacco products edged up 0.9%, primarily due to a growth in domestic sales; at the same time, export sales dropped. The sector generates close to 11% of manufacturing output.

In a month-on-month comparison, output in June was down a seasonally and working day-adjusted 1.8%.

Export volume of the industrial sector increased by 0.2% year-on-year in June as exports of the automotive sector rose 3.1% and exports of the computer, electronics and optical equipment sector fell 2.5%.

Domestic sales of the industrial sector were up 2.6%, within which domestic sales in manufacturing were 0.8% higher compared to the same month of the previous year.

The order stock in parts of the manufacturing sector which the KSH tracks was up 2.8% at the end of June from 12 months earlier. The new order volume fell 11.9%, as new domestic orders were down 4.6% and new export orders dropped 13.0%. New orders in the automotive sector were down 20.0%, the KSH noted.

For the period January-June, industrial output increased by 5.4% year-on-year, compared to the first half of 2018. The volume of export sales (representing 64% of all sales) went up by 5.8%, while domestic sales (accounting for 36% of all sales) grew by 6.4% in H1.

A first estimate of industrial output data for July 2019 will be published on September 6, with a second, more detailed estimate to follow on September 12.

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