In comparison to the previous month, seasonally and workday-adjusted data indicate that the volume of industrial production increased by 0.4 percent, and thus this sector’s performance improved for the third consecutive month. According to workday-adjusted data, in comparison to the corresponding period of the previous year, industrial output declined by 0.7 percent in March 2013.

Unadjusted data shows that industrial output declined by 2.9 percent year-on-year, while the output volume index for the initial three months of 2013 was down by 3.1 percent compared to Q1 2012 figures. Motor vehicle production in the manufacturing sector increased further, but demand for telecommunication equipment, electronic consumer goods as well as food products slackened.

Out of the industrial sectors within the national economy, manufacturing sector output was down by 2.9 percent and that of mining and quarrying – a less significant sector – decreased by 22.4 percent in March 2013 compared to the level of one year ago, while energy sector output declined by 1.1 percent. Among the three largest sub-sectors of the manufacturing industry, only motor vehicle manufacturing expanded (by 6 percent), whereas output of computers, electronic and optical products as well as that of food, beverages and tobacco products decreased by 18.1 percent and 2.3 percent, respectively. In addition to motor vehicle manufacturing, output at two out of thirteen manufacturing industry sectors was higher; the largest decline regarding output volume was registered in the medical and pharmaceutical products sub-sector.

As far as sales volumes are concerned, industrial exports decreased by 0.5 percent and 1.7 percent in the initial three months of 2013 and compared to the same period of the previous year, respectively. The workday-adjusted volume index of exports, however, increased by 0.7 percent in March compared to the corresponding period of the previous year. Export sales of the motor vehicle manufacturing sector – which constitute almost one-third of total exports – was up by 8.5 percent; on the other hand the export volume of computers, electronic and optical products – which comprise one-sixth of manufacturing industry exports – decreased by 17.4 percent. Domestic industrial sales were down by 4.7 percent in January-March 2013 and by 2.7 percent in March, compared to the corresponding periods of 2012. Domestic sales of the manufacturing sector dipped significantly in March, by 9.2 percent, in comparison to the level seen in March 2012.

In March 2013, the value of total orders – due to an earlier single large item – increased by 10.7 percent year-on-year; total new orders, however, showed a decrease of 24.3 percent.

In Q1 2013, industrial output was up markedly, by 27.2 percent, in the Southern Great Plain region, while in Northern Hungary expansion was only feeble at 0.1 percent. In every other region, the output volume index signalled decreases ranging between 4.3 and 7.4 percent.

(Ministry for National Economy)