Industrial production down 2.1% in October
In October 2016, the volume of industrial output declined by 2.1% year-on-year, with the index adjusted for working days equal to the non-adjusted index. In the first ten months of 2016, industrial output rose by 1.1%, according to a second estimate of data published today by the Central Statistical Office (KSH).
The 2.1% year-on-year drop in the volume of industrial production in October showed no change from the KSHʼs first estimate.
The volume of industrial export sales fell by 4.0% compared to October 2015. Of the two manufacturing subsections accounting for more than half of export sales, the export of transport equipment, representing 38% of manufacturing exports, declined by 1.5%. The export volume of computer, electronic and optical products – the other significant subsection, accounting for 15% of manufacturing exports – fell by 2.1%.
Industrial domestic sales dropped by 6.5%. Within this, domestic sales in manufacturing were 5.1% lower year-on-year.
Production decreased in all three branches of industry: by 1.4% in manufacturing (representing the decisive 95% weight), by 6.0% in the energy industry (electricity, gas, steam and air-conditioning supply), and by 12.3% in mining and quarrying (which carries very little weight).
Of manufacturing subsections with significant weight, the production of transport equipment (representing 30% of manufacturing output) declined by 1.4%. Of the two major groups within this subsection – accounting for a combined share of 97% of the output of the subsection – the manufacture of motor vehicles dropped by 6.7%, while the manufacture of parts and accessories for motor vehicles rose by 5.2%.
Manufacturing of computer, electronic and optical products, which carries the second greatest weight (12% of manufacturing output) grew year-on-year by 2.0%. Of the two dominant groups within this subsection, the manufacture of consumer electronics fell by 7.7%, while the manufacture of electronic components and boards dramatically increased by 48%.
Total new orders in the observed subsections of manufacturing declined by 6.7% compared to the same month of 2015. The volume of new domestic orders decreased by 2.3%, while that of new export orders fell by 7.4%. The total volume of orders was above the level of October 2015 by 5.1%.
In the period January–October 2016, industrial production rose by 1.1% compared to the first ten months of the previous year. The volume of export sales (representing 65% of all sales) grew by 0.9%, while that of domestic sales (35% of all sales) fell by 2.1%.
The labour productivity of industrial enterprises with five or more employees decreased by 1.3%, along with a 2.7% increase in the number of employees.
Of the regions of Hungary, industrial production declined in Central Hungary (3.6%), Western Transdanubia (3.5%), and the Northern Great Plain (2.3%) compared to the same period of 2015. In the other four regions, volume increases of between 1.3% and 15.2% were recorded, the highest growth being observed in Southern Transdanubia.
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