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The Hungarian Automotive Industry Soars - Hungary Today

Engine manufacturing in Szentgotthárd

Most manufacturing sub-sectors recorded a decline, while the volume of output increased by 19.1 percent in the largest weighted motor vehicle manufacturing and by 16.9 percent in the manufacture of electrical equipment, the Hungarian Central Statistical Office (HCSO) confirmed in its second estimate – reports Járműipar.

In June, the volume of industrial production was down 3.8 percent overall from a year earlier. Adjusted for working-day effects, production fell by 6.1 percent. Based on seasonally and working-day adjusted data, industrial output was 0.9 percent lower than in May 2023. Compared with June of last year, the volume of industrial exports was 4.0 percent higher than a year earlier.

Exports of motor vehicle manufacturing, accounting for 33 percent of manufacturing export sales, expanded by 23 percent, while exports of electrical equipment manufacturing, weighing in at 15 percent, expanded by 24 percent.

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Domestic sales of industry fell by 20.0 percent and manufacturing by 8.7 percent compared with the same month a year earlier. Manufacturing, accounting for the largest share (95 percent) of manufacturing output, fell by 0.8 percent, while

mining and quarrying, which is only marginally important, declined by 29 percent, and energy (electricity, gas, steam, and air conditioning supply) by 33 percent.

Transport equipment, accounting for 28 percent of manufacturing output, grew by the largest share of all sub-sectors, increasing by 19.1 percent year-on-year. The manufacture of motor vehicles increased by 25 percent and the manufacture of parts for motor vehicles by 14.4 percent.

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Manufacturing-weighted at 11 percent, electrical equipment production was up 16.9 percent from a year earlier. Of the two subsectors with the largest weights,

battery and dry cell manufacturing increased 28 percent, and electric motor, generator, distributor, and controller manufacturing increased by 6.5 percent.

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Output increased in only three subsectors, with the largest increase of 29 percent in the manufacture of light tobacco products. Meat processing, preserving, and preparations, the largest component (22 percent), was down 6.7 percent from the same month a year earlier. In the other eight sub-sectors, output fell by between 6.1 and 40 percent, with the least in the processing and preserving of fruit and vegetables, and the most in the lightly weighted processing and preserving of fish.

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After a two-month decline, the manufacture of light machinery and machinery equipment rose by 7.2 percent, mainly due to an increase in exports, while domestic sales fell significantly.

The largest year-on-year decline of 27 percent was recorded in the manufacture of chemicals and chemical products, with the vast majority of sectors recording significant declines. Industrial production increased in three regions and decreased in five compared to the same period of the previous year.

The volume of new orders in all observed manufacturing sectors was 5.1 percent higher than in June 2022.

New domestic orders fell 9.6 percent, while new export orders rose 8.1 percent. Total orders at the end of June were 10.6 percent higher than a year earlier.

Featured image: Facebook/Szentgotthárdi motorgyár

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