Slovakia's industry grows again. Carmakers fall behind 2018

Industrial production in Slovakia grew year-on-year by 2.8 percent in July.

Slovakia's industrial production grew by 2.8 percent in July, year-on-year.Slovakia's industrial production grew by 2.8 percent in July, year-on-year.(Source: TASR)

Despite a 2-percent year-on-year drop in Slovakia’s industrial production this June, production in the Slovak industry has gone up. In July, it increased by 2.8 percent, year-on-year, the Statistics Office (ŠÚ SR) informed.

“After the surprising sharp fall of the Slovak industry in June, it slightly recovered at the beginning of the summer,” UniCredit Bank analyst Ľubomír Koršňák said, as quoted by the SITA newswire.

Compared with June 2019, industrial production rose by 0.7 percent after seasonal adjustment.

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“Nevertheless, the dynamics of the year-on-year growth of industry lagged behind the pace from the beginning of the year,” Koršňák added, as quoted by TASR.

August numbers

He went on to say regular holiday production shutdowns often distort summer figures, which are unevenly distributed between July and August.

“For stronger conclusions, we must wait for August figures, which can either confirm July's stabilisation of industry or refute it,” Koršňák said, as quoted by SITA.

Analysts, however, expect a holiday effect will be similarly spread out as in the past year; this means August is to confirm the slight growth of Slovak industry.

Car industry falls

Industrial production in July recorded growth despite the fact that the key industry, car production, did not grow again: of the total year-on-year growth in the industry, the car industry declined by more than one percentage point.

“It seems that even the production in the new car plant has not been able to outweigh, in recent months, the decline in the already established part of the industry, which is struggling with declining sales in the markets of several European countries,” Koršňák said, as quoted by SITA.

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However, there may be another reason for poorer figures in the car industry in the last couple of months: the production cycle. Some car makers focused on preparing their production lines for the production of a new model series, or the modernisation of older models, the analyst claimed, as reported by SITA.

Export industries still up

On the other hand, Slovakia's industry is still, surprisingly, being pulled up by the two export industries: the manufacture of electrical equipment and production of machinery. They have both resisted the cyclical slowdown of European economies and the weakening external demand so far.

Both sectors maintained the strong double-digit dynamics of their year-on-year growth in production; besides, the growth rate in both was accelerating even further.

Owing to these two industry sectors, the year-on-year industrial growth increased by almost four percentage points

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Theme: Industry


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