Spectator on facebook

Spectator on facebook

Industrial production kicked off again

Among the main reasons is the end of July corporate holidays.

Illustrative stock photo(Source: SME)

Industrial production increased in August by 17.5 percent year-on-year, which has been the highest rise since at least 2008. The monthly growth in industrial production was also high, amounting to 28.1 percent, after seasonal adjustment.

This was mostly the result of repeated halting of production during planned holidays in several big companies in July, observers agree.

“The holidays thus significantly impacted the industrial numbers this year,” Ľubomír Koršňák, analyst with UniCredit Bank Czech Republic and Slovakia, wrote in a memo.

Industrial growth in August was affected especially by a growth recorded in manufacturing (by 18.9 percent y/y); electricity, gas, steam and air-conditioning supply (by 7.3 percent y/y); and in mining and quarrying (by 6.7 percent y/y), the Statistics Office informed.

The strongest growth was reported mostly in the manufacture of vehicles, which increased by 44.5 percent y/y, Katarína Muchová, analyst with Slovenská Sporiteľňa, wrote in a memo. This was, however, caused by the fact that last year the corporate holidays took place in August rather than July, she added.

Read also: Read also:Slovak foreign trade was in surplus in August

Koršňák, however, says that the August numbers could not fully compensate the July drop in car production. Its growth dynamic slowed down to 4.9 percent y/y in the summer, which is the slowest annual growth in the past year.

“The slow-down in growth of Slovak car makers in the past two months could also be caused by the slower increase in new sales in Europe, which in many countries has grown close to their long-term potential and thus exhausted the potential of post-crisis gain,” Koršňák said, adding that technical halts in production were also caused by preparations for new production lines.

The holiday volatility also impacted other industrial sectors, he added.

The sentiment in Slovak industry, however, still remains positive, Koršňák said.

It is expected that industrial production will continue increasing in the following months and may amount to 4-4.5 percent this year.

There are, however, certain risks from the point of main business partners, especially in the eurozone, or because of the uncertainty caused by Brexit, Muchová said.

Topic: Economics


Top stories

LGBTI people in the regions: We change people’s minds

Bratislava will dress up in rainbow colours this August again, for the seventh time. This will be for the Bratislava Dúhový Pride diversity festival. But the colours of the rainbow are less bright in the regions,…

Slovakia’s LGBTI community seeks to expand their rights.

Things that make us different also make us stronger

On August 19, a rainbow flag will fly over the US Embassy in Bratislava to represent the firm commitment of the United States to defending the human rights of LGBTI people, writes Ambassador Sterling.

The rainbow flag flew over the US Embassy in Bratislava in 2016.

Blog: 5 things you should do on your visit to the north of Slovakia Photo

Here is a list of tips by an experienced tour guide - including things you have probably not tried before.

Bratislava growing high Photo

High-rise buildings sprouting up in Bratislava

Visualisation of the future skyline of Bratislava