The contribution of the automobile manufacturing sector in Slovakia to growth in industrial production in May 2012 was significant, the TASR newswire reported based on an analysis by Boris Fojtík of Tatra Banka released on July 10.
The Statistics Office announced earlier on July 10 that the industrial production index grew by 10.8 percent year-on-year in May 2012. This was influenced by growth in manufacturing by 13.2 percent and a drop in mining and quarrying by 18.7 percent, while electricity, gas, steam and air-conditioning production fell by 2.5 percent.
The increase in overall industrial production was influenced primarily by increased production of vehicles (up 55.2 percent); metals and metal constructions apart from machines and equipment (up 20.1 percent); textiles, garments, leather and leather products (up 7.1 percent); and the production of electrical devices (up 11.2 percent).
Production volumes fell in coke and refined petroleum products by 38.4 percent and in chemicals and chemical products by 41.7 percent.
"Of the 13 sectors of industrial production, six rose. On the other hand, there are significant declines in the oil, chemicals and pharmaceutical industry. A drop in the production of oil products by 41.7 percent was caused by a general revision of operational units at [oil refinery] Slovnaft. This may also be the reason why the production of chemicals went down by 38 percent," Fojtík said, adding that the figures for June also should be affected by a cut in production at Slovnaft as maintenance work was undertaken through mid-June.
"If there is no change in developments in the car-making industry, industrial growth may increase a little. On the other hand, the falling [indicator of economic] sentiment in Germany should be taken into consideration," Fojtík added.
Slovenská Sporiteľňa analysts Martin Baláž and Michal Mušák expect that industry may continue to grow by a double-digit figure in the next few months while the rate of growth may even increase year-on-year in the summer months thanks to the lower base last year as industry contracted last summer, adding that much will depend on economic developments in Germany and possibly also in China.
Compiled by Zuzana Vilikovská from press reports
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