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: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.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Topic: Economics


Top stories

Automotive industry and e-commerce drive the industrial sector

Western Slovakia with Bratislava remains the strongest locality.

Prologis Park Bratislava

Investigative journalists awarded for their bravery

Seven journalists received the White Crow award for defending the public good. The organisers of For a Decent Slovakia were given a special vote of thanks.

The award-winning journalists

Will sisters Paulína and Ivona Fialková represent Slovakia at the Biathlon World Cup?

The Slovak Biathlon Union has banned them from participating but has also registered them for the World Cup.

Paulína (left) and Ivona Fialková

How to elect your mayor

When you live in a small village, you don't care about Bratislava. At home, everything is at stake.