In the initial four months of 2012 the volume of industrial production declined by 0.8 percent in comparison to the same period of the previous year, while in the fourth month of the year the decline of output volume was 3.1 percent according to both unadjusted and workday-adjusted statistics. Seasonally and workday-adjusted data on a monthly basis signal a decline of 2.4 percent in the observed period. It is a positive sign however that there was substantial increase in total new orders of the manufacturing industry on an annualized basis. In addition, the already apparent positive impact of the opening of Mercedes plant indicates a brighter future with regard to industrial production.

Out of the sectors of the national economy, manufacturing industry production declined by 2.8 percent, energy industry output was 7.8 percent lower, whereas production at the less significant mining sector increased by 16.1 percent in April 2012 compared to the corresponding period of the previous year.

Within the manufacturing industry output increased in six sub sectors: in the more significant sub sectors transport equipment production was up by 8.1 percent, and the output of food, beverages and tobacco products increased by 2.2 percent. On the other hand, however, the 14.3 percent decline of the manufacture of computers, electronic and optical products, which is the second biggest sub sector, played the greatest role in the negative industrial production of April. It is clear that the start of production at the Mercedes plant has been apparent in statistics, but the favourable performance of transport equipment output could not offset the production decline of communication equipment and consumer electronics goods.

From the aspect of sales, in April 2012 industrial exports declined by 3.4 percent which was a consequence of the 8.6 percent increase of transport equipment export and the 18.9 percent decline of the export of computers, electronic and optical products. Domestic sales were 1.5 percent lower in April 2012 compared to the level of the previous year, and the domestic turnover of manufacturing industry products declined by 5.8 percent in the observed month.

Is has been a favourable piece of data with regard to the coming months however that due primarily to the 7.4 percent increase of new export orders, the total new orders of manufacturing sectors were up by 5.9 percent. As a parallel phenomenon, on an annualized basis the total number of orders increased by 29.3 percent in the observed month. In addition, the start of production at the Mercedes plant will presumably boost industrial output in the next couple of months as well.

(Ministry for National Economy)