Vehicle manufacturing causes drop in Hungary's industrial production

The stats office noted already when it released the preliminary IP numbers that the main “culprit" for the decrease was the vehicle manufacturing sector. Now it elaborated this remark by showing that out of the sections of industry, production rose by 0.3% in manufacturing representing a decisive weight (96%), and that the production of transport equipment representing 28% of the manufacturing output dropped 7.9% yr/yr.It also played a role in the downturn that the summer stoppage was now in a different period than in the base year and the lower performance level of the subsection was also reflected in its orders indicators. The manufacture of parts and accessories for motor vehicles went up by 1.3%, at the same time the manufacture of motor vehicles fell by 15.9%, the KSH added.

The weaker performance is also reflected in the orders indicators. 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 volume of total stock of orders was below the level of July 2016 by 2.9%.

The volume of industrial export sales rose by 1.1% compared to the same period of the previous year. Within export sales in manufacturing, the exports of transport equipment representing 35% 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%.

• Tags:
• manufacturing,
• economy,
• industrial production,
• industry,
• vehicle