Industrial production increased by 5.8%
In December 2020 the volume of industrial production grew by 5.8% year-on-year. Based on working-day adjusted data production rose by 1.1%. Compared to raw data, the significant difference is due to the fact that there were two more working days in December 2020 than in December 2019. The decrease was 2.4% compared to the previous month according to seasonally and working-day adjusted data. Industrial production declined in 2020 by 6.1% compared to the previous year.
In December 2020:
The volume of industrial production increased by 5.8% compared to the same period of the previous year. (Compared to the December data published in the first estimate, the data in the second estimate did not change.)
Industrial output in December – according to seasonally and working-day adjusted indices – was 2.4% below the level of the previous month, however it grew by 58% compared to the nadir of April.
The volume of industrial export was above the previous year’s level by 9.4%. Transport equipment export, representing a 34% weight within export sales in manufacturing went up by 12.6%, at the same time the export in manufacture of computer, electronic and optical products accounting for a 14% weight fell by 8.7%.
Industrial domestic sales declined by 1.2%, while domestic sales in manufacturing were 2.4% lower compared to the same month of the previous year.
Within industry, production increased by 6.7% in the decisive weight (95%) representing manufacturing, at the same time it dropped by 3.9% in the small weight representing mining and quarrying. The output of energy industry (electricity, gas, steam and air-conditioning supply) rose by 6.1%.
Changes in the production and sales of manufacturing
(%)
| Period | Production | Total | Domestic | Export | Share of export in sales at current prices | |
|---|---|---|---|---|---|---|
| sales | ||||||
| Volume index, corresponding period of previous year = 100.0 | ||||||
| 2018 | 103.5 | 103.2 | 109.2 | 101.1 | 72.9 | |
| 2019 | 105.6 | 106.4 | 106.3 | 106.4 | 72.5 | |
| 2020 | January | 103.5 | 102.9 | 97.3 | 104.8 | 75.8 |
| February | 104.4 | 104.4 | 101.0 | 105.6 | 75.4 | |
| March | 94.3 | 93.2 | 99.5 | 91.1 | 72.8 | |
| April | 61.6 | 61.2 | 75.4 | 56.0 | 67.1 | |
| May | 68.3 | 70.3 | 76.4 | 68.2 | 71.4 | |
| June | 93.2 | 95.2 | 89.9 | 97.0 | 75.4 | |
| July | 92.2 | 93.0 | 88.8 | 94.6 | 73.1 | |
| August | 98.6 | 97.2 | 93.7 | 98.5 | 73.2 | |
| September | 103.3 | 103.5 | 98.8 | 105.1 | 75.6 | |
| October | 100.7 | 98.9 | 93.5 | 100.8 | 75.8 | |
| November | 103.6 | 105.6 | 97.0 | 108.7 | 75.7 | |
| December | 106.7 | 104.5 | 97.6 | 107.5 | 71.6 | |
| From the beginning of the year | 94.0 | 94.1 | 92.3 | 94.7 | 73.9 | |
The largest weight carrying manufacture of transport equipment representing 28% of the manufacturing output exceeded by 13.8 % the previous year’s production. The volume of motor vehicles manufacturing increased by 18.0%, the manufacture of parts and accessories for motor vehicles went up by 11.5%.
The manufacture of computer, electronic and optical products accounting for 11% of manufacturing fell by 5.4%. Out of the two largest groups the more significant one, the manufacture of electronic components and boards rose by 74%, while the smaller weight carrying one, the manufacture of consumer electronics dropped by 6.8%.
The manufacture of food products, beverages and tobacco products having a 12% share in manufacturing grew by 3.6% with increases measured in both sales directions. Altogether the production declined in three groups. The processing and preserving meat and the production of meat products representing the largest weight (24%) decreased by 1.1%, while the manufacture of beverages, the second most significant group fell to the highest degree, by 6.1%. Out of the groups the processing and preserving of fish, crustaceans and molluscs having a very small weight grew the most, reaching an output more than seven times larger than in the previous year, however, the manufacture of vegetable and animal oils and fats also increased significantly, by 24%.
Among the subsections the manufacture of electrical equipment having medium weight grew at the highest rate, by 35%, mainly due to the expansion in the manufacture of batteries and accumulators connected with the manufacture of transport equipment.
Out of the other two medium-weight representing subsections the manufacture of rubber and plastics products, and other non-metallic mineral products rose by 7.1%, at the same time the manufacture of basic metals and fabricated metal products dropped by 4.8% year-on-year.
The manufacture of machinery and equipment n.e.c having a smaller weight rose by 15.4%, primarily owing to a favourable tendency in export demand, however domestic sales declined.
The rate of growth accelerated in the manufacture of chemicals and chemical products. The December output went up by 14.6%, mainly due to the manufacture of plastics in primary forms.
The manufacture of textiles, wearing apparel, leather and related products representing the smallest weight fell the most, by 12.5%, decreases were measured in the majority of classes.
Changes in production in the major subsections of manufacturing, December 2020
(%)
| Subsections | Volume indices of production, corresponding period of the previous year = 100.0 | Share of subsection within manufacturing at current prices | |
|---|---|---|---|
| code | denomination | ||
| CA | Manufacture of food products, beverages and tobacco products | 103.6 | 11.6 |
| CG | Manufacture of rubber and plastics products, and other non-metallic mineral products | 107.1 | 7.9 |
| CH | Manufacture of basic metals and fabricated metal products, except machinery and equipment | 95.2 | 7.1 |
| CI | Manufacture of computer, electronic and optical products | 94.6 | 11.0 |
| CJ | Manufacture of electrical equipment | 135.0 | 7.0 |
| CL | Manufacture of transport equipment | 113.8 | 28.1 |
Industrial production decreased only in Southern Transdanubia (by 3.1%) and in Budapest (by 1.2%). In the other regions volume increases between 3.4% and 16.2% were recorded, the highest one in Pest region.
Total new orders volume in the observed divisions of manufacturing declined by 7.8% compared to December 2019. New domestic orders dropped by 9.4%, new export orders fell by 7.7%. The total stock of orders at the end of December was below the previous year’s level by 3.4%.
In 2020, compared to the previous year:
Industrial production fell by 6.1%, following the 5.6% increase of the previous year. Within this, out of the three sections, output declined by 26% in the low weight representing mining and quarrying, by 6.0% in manufacturing, at the same time it grew by 1.4% in the energy industry compared to 2019.
In manufacturing, production value at current prices was close to HUF 33 thousand billion in 2020. The volume of production continually lagged behind the previous year’s level between March and August. The greatest fall (38%) was in April when production stopped temporarily in several factories, among them in ones of major significance in the Hungarian industry. Only in four of the thirteen subsections of manufacturing increased the production volume, while in the others volume decreases between 3.1% and 17.0% were registered. Out of the three largest subsections, the manufacture of transport equipment, considered to be the most significant, fell by 11.2%, while the manufacture of computer, electronic and optical products grew by 0.8%, the manufacture of food products, beverages and tobacco products rose by 1.0%.
Industrial export sales decreased year-on-year by 5.5% (in 2019, we measured a 6.6% volume increase). Exports accounted for 64% of total industrial sales and for 74% of manufacturing sales. Manufacturing exports declined by 5.3% compared to the previous year. Two manufacturing subsections gave more than half of all export sales. Within it a 11% export volume drop occurred in the 34% weight representing manufacture of transport equipment (although increases have been observed in the last four months of the year). The second largest subsection (accounting for 17%), the manufacture of computer, electronic and optical products grew by 0.9% in export volume.
Industrial domestic sales declined by 5.1%, including a 7.7% fall in domestic sales of manufacturing. Domestic sales practically stayed at the level of the previous year in the manufacture of food products, beverages and tobacco products, representing 26% of domestic manufacturing sales. Domestic sales of the manufacture of rubber and plastics products, and other non-metallic mineral products accounting for 13% of domestic manufacturing (second largest subsection) dropped by 11.6 % in 2020.
Industrial production rose only in the Northern Great Plain (by 6.5%) and Pest region (by 1.5%), while in the other regions volume decreases between 3.3% and 11.0% were recorded, the largest one in Western Transdanubia.