In the third quarter of 2012, manufacturing sector investments which constitute more than 30 percent of total Hungarian investments could pick up steam again, due primarily to impressive performance in sub sectors of significant weight. In the third quarter manufacturing sector investments increased by 3.8 percent year-on-year.

Similarly to the previous quarter, investments in the field of transport equipment manufacturing increased outstandingly which field provides the largest share of manufacturing industry output. Investment projects related to the manufacturing of machinery and equipment (a significant sub sector) and manufacturing of electrical equipment (a sub sector of slightly less weight) could also grow. This development is demonstrated by the below chart:

Along with the manufacturing industry, the investment growth of 9 percent related to transport and storage assisted the positive correction in the period at issue, as a result of completing road development and renovation projects.

Investments in the observed quarter were also higher regarding national economy sectors of less weight, such as public administration, defense, compulsory social insurance as well as administrative and support service activities, the latter ones increasing by 7.2 percent and 12.2 percent, respectively.

However, some unfavourable trends have continued: among significant sectors education investments decreased markedly (by 36.9 percent), but as a consequence of the decline of public utility reconstruction projects in the fields of water supply, wastewater collection and pipeline maintenance investments were also down by almost 20 percent. Several less significant sectors – for example mining and quarrying, as well as human health and social work activities – have also been affected by diminishing investment volumes.

As a whole, the slowing down of the decline of domestic investments in the third quarter has been a positive trend. Thus, the decrease of 5.9 percent recorded in the second quarter of 2012 could moderate to 2.1 percent. Regarding material-technical breakdown construction investments continue to decline, but the production of machinery and equipment was boosted by 3.7 percent more investments.

(Ministry for National Economy)