Industrial production in May grew 6.1 percent year-on-year after adjustment due to number of working days.

“Thus, the industry has been showing its strength so far,” Home Credit analyst Michal Kozub commented for the TASR newswire on the May data published by the Slovak Statistics Office (ŠÚ) July 10. He also said that the economic revival continues during the whole first half-year of 2014. “The big growth of industry is based on the production of vehicles which increased in 6.7 percent, he continued. “The car production is also one of the biggest contributors to the growth; but other sectors join in, which grew markedly in May. For example production of electric devices increased in 28.7 percent, metals 15.2
percent.”

Kozub added, however, that H2 2014 need not be as strong as H1. Already the results of new orders for April show that the growth might slow down in the upcoming months; and this will be translated in overall result, Kozub told TASR.

VÚB bank macroeconomist Andrej Arady agreed that the growth was boosted mainly by the production of cars, metals, and electric devices. "The centre of growth is quite well divided among these segments, which indicates a relatively stable outlook,” he said. “The June poll among companies still hints that the slow-down that core eurozone countries recorded probably with some delay, will not avoid Slovakia, either. The companies expect a mild slow-down of production, Arady summed up.

Tatra banka analyst Boris Fojtík said the industrial growth will slow. “Such a development is in line with our prognosis, when we see rather the risk of slight slow-down in growth for the rest of this year, which would bring the average for the whole year close to 5.5 percent,” he said.

In terms of the main industrial groupings, production of intermediate goods rose by 10.8 percent, production of investment goods by 7.3 percent and the production of durable consumer goods by 2.3 percent. Production of non-durable consumer goods was lower by 5.3 percent and production related to energy by 0.6 percent.

After seasonal adjustment, industrial production grew by 0.7 percent in May, compared to April. Over the first five months, the IPI grew on average by 6.8 percent, year-on-year, and by 8.3 percent in manufacturing. Production was lower in electricity, gas, steam and air-conditioning supply by 2.1 percent, in mining and quarrying by 1.4 percent, the ŠÚ wrote.

(Source: TASR, ŠÚ)
Compiled by Zuzana Vilikovská from press reports
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