KSH confirms near-stagnant industrial output in May
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In May 2018, the volume of industrial output grew by just 0.4% year-on-year, the Central Statistical Office (KSH) reported in a second estimate Thursday, confirming its flash reading released last week. Adjusted for the number of working days – of which there was one more in the base period – output climbed 3.8%.
In the previous month, output rose by 7.8% according to unadjusted data, and by 2.9% according to adjusted data. In a month-on-month comparison, output in May was up a seasonally and working day-adjusted 1.9%.
The volume of industrial exports declined by 2.0% year-on-year in May. Within export sales in manufacturing, transport equipment exports (representing 35% of the total) fell 10.2%. At the same time, the export volume of computer, electronic and optical products, accounting for 15% of manufacturing exports, rose by 5.7%.
Industrial domestic sales grew by 2.9%, within which domestic sales in manufacturing were 7.1% higher compared to the same month of the previous year.
Within industry, production increased by 0.6% in manufacturing – representing a decisive weight of 96%. Output of the energy industry (electricity, gas, steam and air-conditioning supply) dropped 8.9%.
The production of transport equipment, representing 28% of manufacturing output, decreased year-on-year by 5.2%. The lower performance level of the subsection was also reflected in orders. The manufacture of parts and accessories for motor vehicles rose by 1.0%, while the manufacture of motor vehicles fell by 11.7%.
The manufacture of computer, electronic and optical products, accounting for 11% of manufacturing, grew by 4.9%. The manufacture of food, beverages and tobacco products, representing 10% of manufacturing, rose by 4.8% compared to May 2017, mostly due to an increase in domestic sales, while exports stagnated.
Labor productivity declines
With a 3.4% increase in the number of employees, the labor productivity of industrial enterprises with five or more employees was 2.9% lower in May than in the same month of the previous year.
Among Hungaryʼs regions, industrial production decreased in Western Transdanubia (by 2.7%), and in Southern Transdanubia (by 6.4%), while stagnating in the Northern Great Plain region. Volume increases of 2.3% to 5.7% were recorded in the other regions, with the highest growth observed in the Pest region.
The total volume of new orders in the observed subsections of manufacturing grew by 3.2% compared to May 2017. New domestic orders rose by 0.1%, while new export orders went up by 3.7%. The total stock of orders was below the level of May 2017 by 6.2%.
In January–May 2018, compared to the first five months of 2017, industrial production increased by 3.1%. The volume of export sales (representing 64% of all sales) went up by 1.1%, while that of domestic sales (accounting for 36% of the total) rose by 5.3%.
The labor productivity of industrial enterprises with five or more employees declined by 0.7% in January-May, along with a 3.7% increase in the number of employees.
Industrial production grew year-on-year in every region over the first five months of 2018. The largest volume growth (7.6%) was measured in Southern Transdanubia, while volume increases of between 0.3% and 7.4% were measured in the other regions.
A first estimate of industrial production for June 2018 - and thus also for the first half of the year - will be published on August 7, with a second, more detailed estimate due on August 13.
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