Industrial production up in EU, while Hungary is among the laggards

According to Eurostat data, industrial production increased by 0.2% in the euro area and by 0.1% in the EU compared to April 2022.

According to seasonally adjusted data, IP was up 1.0% month on month in the euro area and by 0.7% in the EU. In March 2023, industrial production decreased by 3.8% in the euro area and by 3.2% in the EU. The average forecast of analysts was for an 0.8% m/m growth in the Eurozone, i.e. the data is a moderate surprise on the upside.

In the euro area in April 2023, compared with March 2023,

• production of capital goods grew by 14.7% (vs. -15.2% in March) and
• energy by 1.0% (vs. -1.4% in March), while
• production of intermediate goods fell by 1.0%,
• durable consumer goods by 2.6% and
• non-durable consumer goods by 3.0%.

In the EU, production of capital goods grew by 12.1% m/m and energy by 0.3%, while production of intermediate goods fell by 1.0%, durable consumer goods and non-durable consumer goods both by 2.2%.

Among Member States for which data are available, the highest annual increases were registered in Ireland (+22.5%), Malta (+14.3%) and Denmark (+12.2%). The largest decreases were observed in Estonia (-15.1%), the Netherlands (-12.8%) and Bulgaria (-12.5%).

Among Member States for which data are available, the highest monthly increases were registered in Ireland (+21.5%), Lithuania (+2.8%) and Sweden (+1.4%). The largest decreases were observed in Slovenia (-7.9%), Portugal (-5.5%) and the Netherlands (-3.5%).

Hungarian industry had a poor start to the second quarter, with output in April 2.5% down on the previous month. The sector's weak performance increases the likelihood that the Hungarian economy could contract for the fourth consecutive quarter.

Cover photo: Getty Images