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Industrial production down 30.7% y.o.y. in May

The volume of industrial production in Hungary was 30.7% lower in May 2020 than a year before, according to data published by the Central Statistical Office (KSH).

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Based on working-day adjusted data, production fell by 27.6% year-on-year. On the other hand, the industrial output was 15.6% higher than in April, according to seasonally and working-day adjusted indices.

KSH notes that the economic outfall of the coronavirus epidemic had a significant effect on production.

In May 2020, the volume of industrial export dropped by 32% year-on-year. Transport equipment export, representing a 27% weight within export sales in manufacturing fell by 51%, while the export in the manufacture of computer, electronic and optical products accounting for a 17% weight declined by 18.3%.

Industrial domestic sales decreased by 19.7%. Domestic sales in manufacturing were 24% lower compared to the same month of 2019.

Manufacturing output falls 32%

Within industry, production fell by 32% in the decisive weight (95%) representing manufacturing, and it dropped by 18.5% in the small weight representing mining and quarrying. The output of the energy industry declined by 6.2%.

The production volume decreased in all manufacturing subsections. The manufacture of transport equipment representing 21% of the manufacturing output decreased at the highest rate, by 53% year-on-year. The volume of motor vehicle manufacturing fell by 55%, the manufacture of parts and accessories for motor vehicles fell by 54%.

The manufacture of computer, electronic and optical products accounting for 13% of manufacturing declined by 21%. Out of the two largest groups, the manufacture of electronic components and boards rose by 22%, while the manufacture of consumer electronics decreased by 25%.

The manufacture of food products, beverages and tobacco products having a 13% share in manufacturing was less affected by the epidemic. The volume of production was 12% lower compared to the same month of the previous year, with decreases measured in both sales directions.

The meat preservation and processing, and the production of meat products representing the largest weight (23%) fell by 19.5%, the manufacture of beverages, the second most significant group dropped by 10.1%.

Production grew in three groups altogether. Out of the two smallest weight carrying ones, the processing and preserving of fish, crustaceans and molluscs went up by 12.9%, the manufacture of tobacco products increased by 5.6%, while the manufacture of vegetable and animal oils and fats, having a greater weight, rose by 9.8%.

Out of the medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products decreased by 27%, the manufacture of basic metals and fabricated metal products dropped by 33% year-on-year.

The manufacture of basic pharmaceutical products and pharmaceutical preparations declined only by 3.4% year-on-year, meaning that an increase was measured compared to April 2020.

Production falls in every region

Industrial production fell in every region compared to the same month of the previous year. The largest decrease (44%) was recorded in Western Transdanubia, volume declines were measured between 10.8% and 36% in all the others.

Total new orders volume in the observed divisions of manufacturing fell by 38% compared to May 2019. New domestic orders declined by 30%, new export orders dropped by 39%. The total stock of orders at the end of May was below the previous year’s level by 8.5%.

Jan-May production down 13.8% year-on-year

In the first five months of 2020, industrial production dropped by 13.8%. The volume of export sales representing 63% of all sales fell by 15%, while domestic sales accounting for 37% of all sales declined by 8.7%.

Industrial production declined in every region between 0.1% and 24%. The largest fall was registered in Western Transdanubia.