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Industrial production up 1.3 percent y-o-y in May

THE INDUSTRIAL Production Index grew by 1.3 percent year-on-year in May, the Slovak (ŠÚ) Statistics Office reported on July 10. 

(Source: Sme)

This was due to annual hikes in supplies of electricity, gas, steam and air conditioning (by 2.1 percent) and in industrial production (1.2 percent). Meanwhile, output in mining and quarrying fell by 3.3 percent.

Growth in overall industrial production was facilitated mainly by increases in the production of electrical devices (18.6 percent); in the production of coke and refined oil products (33.8 percent); in the production of rubber, plastics and other non-metallic mineral products (4.7 percent); in the manufacture of metals and metallic structures excluding machines and equipment (2.8 percent); and in other production, repairs and the assembly of machines and equipment (7.6 percent).

Output declined in the production of computer, electronic and optical products (32 percent); in the production of transport vehicles (1.2 percent); in the production of textiles, clothes, leather and leather products (3.5 percent); and in the production of chemicals and chemical products (0.7 percent). When seasonal effects are taken into account, industrial production rose by 0.1 percent month-on-month in May.

In the first five months of 2015, meanwhile, the index was up by 4.5 percent y-o-y. This was due to increases in supplies of electricity, gas, steam and air conditioning (by 6.8 percent); in mining and quarrying (5.4 percent); and in industrial production (4.2 percent).

“Industry grew at its slowest pace since last November,” Ľubomír Koršňák, UniCredit Bank analyst informed. “On the other hand, the construction industry left the bottom, and grew in May 15.3 percent y-o-y. The last time the construction sector was stronger was in October 2008.”

It is the main export branches of Slovak industry that are failing, Koršňák added, citing that electronics producers – after seasonal adjustment – have been reducing their production for the third consecutive month, while it was also lower than in 2014 by one third. The automotive industry managed to slightly increase its production, compared to the previous month, but the dynamics of its y-o-y decline deepened from -0.3 percent to -1.2 percent, and carmakers thus reduced the overall y-o-y growth of industry by an additional -0.4 percent. Engineering and metallurgy were also slow in May.

Thus, the positive exceptions among export fields were producers of electric devices who returned to two-digit dynamics of y-o-y growth; and the construction sector that also confirmed its revival in May.  

In June, the economic sentiment in industry improved again, while it was mostly the industrial plants whose expectations grew most, according to Koršňák. The current slow-down of industry could be temporary and in the second half of 2015, the dynamics of growth could accelerate again, with last year’s low comparison base helping the y-o-y statistics.  

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Topic: Economics


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