Declining auto sector output stalls industrial growth


Output of Hungaryʼs automotive sector, a key driver of industry in the country, fell 7.9% year-on-year in July, shows a detailed reading of data released Wednesday by the Central Statistical Office (KSH). Headline output edged up just 0.2% in July, confirming the first reading on September 6, down from 4.0% the previous month.

In July 2017, the volume of industrial production increased by 0.2% year-on-year based on both working day-adjusted and non-adjusted indices.

According to the seasonally and working-day adjusted index, output was below the level of the previous month by 4.2%.

The volume of industrial export sales rose by 1.1% compared to the same period of the previous year. Within export sales in manufacturing, exports of transport equipment (representing 35% of the total) declined by 8.3%. In the manufacture of computer, electronic and optical products – accounting for 14% of manufacturing exports – the export volume increased by 1.6%.

Industrial domestic sales, and within this the domestic sales of manufacturing, both grew year-on-year by 2.2%.

Of the sections of industry, production rose by 0.3% in manufacturing (representing a decisive weight of 96%) and by 15.7% in mining and quarrying, carrying little weight. The output of the energy industry (electricity, gas, steam and air-conditioning supply) decreased by 6.4%.

The production of transport equipment, representing 28% of manufacturing output, dropped year-on-year by 7.9%. The downturn was partly attributable to the summer stoppage being in a different period than in the base year, while the lower performance level of the subsection was also reflected in its orders indicator. The manufacture of parts and accessories for motor vehicles went up by 1.3%, but the manufacture of motor vehicles fell by 15.9%.

The output of computer, electronic and optical products, accounting for 11% of manufacturing, grew by 4.9%, and within this the manufacture of consumer electronics grew outstandingly, by 15.3%.

The manufacture of food products, beverages and tobacco, accounting for 12% of manufacturing, rose by 4.6%.

Total new orders in the observed subsections of manufacturing declined by 2.5% compared to the same month of 2016. The volume of new export orders decreased by 2.3%, while that of new domestic orders dropped by 3.8%. The total stock of orders was below the level of July 2016 by 2.9%.

In January–July 2017

In January–July 2017, compared to the same seven-month period of the previous year, industrial production rose by 4.8%.

The volume of export sales, representing 65% of all sales, grew by 5.2%, while that of domestic sales, accounting for 35% of all sales, grew by 3.6%.

The labor productivity of industrial enterprises with five or more employees went up by 1.4%, alongside a 3.2% increase in headcount.

Industrial production rose in every region of Hungary. The largest volume growth was measured in the Northern Great Plain (8.5%), and the lowest in the Southern Great Plain (3.1%).

A first estimate of industrial output figures for August 2017 will be released by the KSH on 6 October.

Heavy Rains Expected This Week to Ease Drought Weather

Heavy Rains Expected This Week to Ease Drought

Hungary Treats Smooth EU Transition as Priority, Says Bóka EU

Hungary Treats Smooth EU Transition as Priority, Says Bóka

HU-rizon Program: HUF 8 bln Funding for International Resear... Science

HU-rizon Program: HUF 8 bln Funding for International Resear...

Inspiring Women at the Focus of Gourmet Fest In Budapest

Inspiring Women at the Focus of Gourmet Fest


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.