Decline in Hungary’s Industrial Production Continues; Drop in March 2024 by 10.4%

The volume of industrial export was 12.2% lower than a year earlier. Transport equipment export, representing a 32% weight within export sales in manufacturing fell by 13.5%, the manufacture of electrical equipment export, accounting for a 14% weight, dropped by 19.4%.

Domestic sales of industry declined by 7.7%, those of manufacturing decreased by 8.5% compared to the same month of the previous year.

Within industry, production dropped by 11.3% in the decisive weight (95%) representing manufacturing, it declined by 0.6% in the energy industry (electricity, gas, steam and air-conditioning supply), while output rose by 1.1% in the small weight representing mining and quarrying.

The largest weight representing manufacture of transport equipment, having a 27% share in manufacturing production decreased by 11.5% compared to the same month of the previous year. Motor vehicles manufacturing declined by 9.4%, the manufacture of parts and accessories for motor vehicles fell by 12.6%.

The manufacture of electrical equipment, having a 11% weight in manufacturing, declined by 17.0% year-on-year. Out of the two largest weight representing groups the volume in manufacture of batteries and accumulators dropped by 17.5%, the manufacture of electric motors, generators, transformers and electricity distribution and control apparatus fell by 21%.

The manufacture of computer, electronic and optical products, accounting for 9.4% within manufacturing output, decreased by 13.0% compared to the same month of the previous year. Out of the two largest groups, the manufacture of electronic components and boards dropped by 32%, the manufacture of consumer electronics grew by 2.3%.

The manufacture of food products, beverages and tobacco products, having a 12% share in manufacturing, declined by 3.9% year-on-year, due to a decrease in both domestic and export sales. Processing and preserving meat and the production of meat products, representing the largest weight (23%), dropped by 3.7% compared to the same month of the previous year. Production decreased between 0.3% and 15.7% in other nine groups, to the greatest extent in the small weight carrying manufacture of tobacco products, least of all in the manufacture of bakery and farinaceous products. Output grew only in one group: in the manufacture of grain mill products, starches and starch products, by 25%.

Contrary to the increase of the previous month, the manufacture of pharmaceuticals, medicinal chemical and botanical products fell in March by 11.0% compared to the same month of the previous year, sales dropped in both directions.

Out of the two medium-weight representing subsections, the manufacture of rubber and plastics products, and other non-metallic mineral products declined by 8.1%, the manufacture of basic metals and fabricated metal products dropped by 13.4% compared to the same month of the previous year.

Out of the subsections the manufacture of machinery and equipment n.e.c. lagged behind the most, by 18.6% compared to a year earlier, the effect of the high base also played a role in the decrease.

Industrial production fell in every region of Hungary compared to the same month of the previous year: to the greatest extent, by 16.2% in Western Transdanubia, the least, by 3.0% in the Southern Great Plain.

The volume of total new orders in the observed divisions of manufacturing was 14% lower compared to March 2023. New domestic orders declined by 4.9%, new export orders dropped by 15.4%. The total stock of orders at the end of March was below the previous year’s level by 21%.

In January–March 2024, compared to the same period of the previous year:

Industrial production decreased by 4.1%. The volume of export sales, representing 61% of all sales dropped by 5.9%, domestic sales accounting for 39% of all sales fell by 4.1%.

Out of the thirteen manufacturing subsections production declined in eleven, to the greatest extent, by 14.1%, in the manufacture of machinery and equipment n.e.c. The output of the manufacture of transport equipment, the largest subsection, dropped by 5.3%. The volume rose only in two subsections: in the manufacture of food products, beverages and tobacco products, by 4.1%, and in the manufacture of coke, and refined petroleum products, by 0.8%.