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Industrial output up 4.8% in 2017, KSH confirms

In December 2017, the volume of industrial output declined by 0.5% year-on-year. Based on working day-adjusted data, production grew by 4.5%. In 2017 as a whole, production volume was 4.8% higher than in 2016, shows a second estimate of data from the Central Statistical Office (KSH) for December 2017.

Compared to the data for December published in the first estimate on February 7, there was no change to the data in the second estimate. The significant difference between the raw and adjusted figures is due to the fact that there were two fewer working days in December 2017 than in December 2016, the KSH noted.

Industrial output – according to the seasonally and working day-adjusted index – was above the previous month’s level by 1.2%.

The volume of industrial exports declined by 1.9% compared to the same month of the previous year. Within export sales in manufacturing, exports of transport equipment – representing 33% of the total - rose by 2.8%. At the same time, in the manufacture of computer, electronic and optical products – accounting for 16% of manufacturing exports – export sales grew by 0.2%.

Industrial domestic sales decreased by 0.7%, within which the domestic sales of manufacturing were 0.2% lower year-on-year.

Production fell in all three sections of industry: by 0.5% in manufacturing (representing a decisive weight of 94%), by 1.8% in energy (electricity, gas, steam and air-conditioning supply), and by 2.0% in mining and quarrying, carrying very little weight.

The production of transport equipment - representing 26% of manufacturing output - rose year-on-year by 4.6%. The manufacture of motor vehicles increased by 0.9%, while production of parts and accessories for motor vehicles grew by 8.2%.

The manufacture of computer, electronic and optical products - accounting for 11% of manufacturing - dropped by 1.4%. The manufacture of consumer electronics, while showing an increase throughout the year, fell by 22% in December.

The manufacture of food products, beverages and tobacco products, accounting for 12% of manufacturing output, declined by 0.5%.

Along with a 3.5% increase in the number of employees, the labor productivity of industrial enterprises with five or more employees was 3.9% lower in December than in the same month of the previous year, the KSH noted.

Industrial production rose in three regions – in Southern Transdanubia (4.2%), Western Transdanubia (3.4%), and Southern Great Plain (2.1%). In the other four regions, volume decreases of 0.6%-5.3% were recorded, with the highest fall observed in Central Hungary.

Total new orders in the observed subsections of manufacturing in December dropped by 2.6% compared to the same month of 2016. New domestic orders volume increased by 1.9%, while new export orders fell by 2.9%. The total stock of orders was below the level of December 2016 by 10.8%.

Industrial output picks up in 2017 as a whole

In 2017, industrial production rose by 4.8%, following the previous yearʼs modest 0.9% rise. Within this, output practically stagnated in the energy industry, but grew by 24% in mining and quarrying compared to 2016. The volume of manufacturing output rose year-on-year by 4.9% in 2017.

Of the thirteen subsections of manufacturing a decrease was recorded in one subsection only, in the manufacture of chemicals and chemical products, while volume increases ranging from 1.5% to 12.5% were recorded in all others subsections.

Of the three biggest subsections, production grew by 1.5% in the manufacture of transport equipment, which is considered the most significant, while output of computer, electronic and optical products rose by 8.8%, and manufacture of food products, beverages and tobacco products went up by 2.0%.

Industrial export sales grew year-on-year by 5.3% (compared to a 0.3% volume increase in 2016). Exports accounted for 65% of total industrial sales and for 75% of manufacturing sales. Manufacturing exports rose by 4.7% compared with a year earlier.

Two manufacturing subsections accounted for more than half of all export sales in 2017. The export volume of transport equipment - representing 35% of manufacturing exports - increased by 1.2%, while exports of the second largest subsection, the manufacture of computer, electronic and optical products (carrying 15% weight) went up by 8.4%.

Industrial domestic sales, and within this domestic sales of manufacturing, grew almost at the same rate (by 3.5% and 3.6%, respectively) in 2017. Domestic sales increased by 1.9% in the manufacture of food products, beverages and tobacco products, accounting for 26% of domestic manufacturing sales.

Labor productivity of industrial enterprises with five or more employees went up by 1.4% in 2017 as a whole, along with a 3.2% increase in the number of employees.

Industrial production rose in every region of Hungary last year. The largest volume growth was measured in Northern Great Plain (7.7%), and the lowest in Southern Great Plain (2.6%).

The KSH will publish its first estimate of figures for industrial production in January 2018 on March 7.